Tepco effectively nationalized with new bailout
Reports are emerging that Tokyo Electric Power Co (Tepco) is getting a USD13 billion bailout from the Japanese government, effectively nationalizing it.
Crippled by liabilities arising from the earthquake and tsunami in March 2011 which saw radiation seep from its damaged nuclear power plant at Fukushima, there has long been speculation that its days as an exchange-listed giant were limited in spite of the company's and government's consistent denials.
Insiders are being quoted by Reuters that the new government injection of USD12.8 billion would effectively nationalize Tepco. The company has desperately been avoiding the inevitable funding and a proposal for a state-backed Nuclear Damage Liability Facilitation Fund, which it knows would mean losing control of the board and company to the government.