Bloomberg News

Tepco Receives Government Aid, Averts Threat of Being Delisted

February 13, 2012

Feb. 13 (Bloomberg) -- Tokyo Electric Power Co. received agreement from Japan’s government for $8.9 billion of aid to support compensation payments after the Fukushima nuclear disaster, averting the risk of having its stock listing removed.

Yukio Edano, Japan’s trade and industry minister, agreed to the request at a meeting today in the capital with Tokyo Electric President Toshio Nishizawa. The company said it will announce its earnings today at 4:30 p.m., before tomorrow’s deadline, after they were delayed while the company pushed for approval of the government aid.

The utility known as Tepco in December asked for 689.4 billion yen ($8.9 billion) in further aid after raising its estimate for compensation payments to those affected by the disaster to 1.7 trillion yen. Edano said on Feb. 10 government support isn’t intended to help the company meet a deadline to report its financial statements and it needs to show commitment to becoming “a newborn Tepco.”

The owner of the crippled Fukushima plant had to file a quarterly financial report to regulators by tomorrow under Japanese law. Its shares would’ve been struck from the Tokyo Stock Exchange a month after being placed under supervision if no quarterly report was filed, according to bourse rules.

Tepco spokesman Atsushi Sugiyama said earlier today it would be difficult to file results for the nine months ended Dec. 31 before approval of the request is approved.

The company said in November it expects a loss of 600 billion yen for the year March, bringing losses from the crisis to 1.85 trillion yen. Tepco reported a full-year loss of 1.25 trillion yen last fiscal year.

About 160,000 people fled radiation as three reactors went into meltdown at the Fukushima Dai-Ichi plant after the March 11 earthquake and tsunami.

--Editor: Teo Chian Wei

To contact the reporter on this story: Aaron Sheldrick in Tokyo at asheldrick@bloomberg.net

To contact the editor responsible for this story: Teo Chian Wei at cwteo@bloomberg.net


Race, Class, and the Future of Ferguson
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus