"The nationalization of TEPCO is a possible option," said Koichiro Gemba today, Japanese Minister of National Strategy. This was reported by the Kyodo news agency. "The government could acquire a majority stake of the company that operates the plant in Fukushima and appoint new managers," wrote the Yomiuri, the most popular Japanese newspaper, citing government sources.
The output of Koichiro Gemba was promptly contradicted by other official sources. A Japanese government spokesman said that "no government organization would be thinking of a nationalization." TEPCO has confirmed that it is not aware of any such plan. The alarm, however, continues to be high and, as reported today by the German financial newspaper Handelsblatt, behind the rumors about a possible government control of TEPCO, there would be concerns for "damages to the victims of nuclear catastrophe, which could become very high and impossible to pay for the company that operates the reactors.
The same version of events is reported by Yomiuri, referring to talks with "some members of the government" who would have spoken of the possibility that the state, acquiring a controlling stake, "TEPCO to help pay for the damage of the nuclear ". The markets, meanwhile, are already preparing.
Today the exchange of securities to TEPCO Tokyo Stock Exchange was suspended for excess downwards. The shares fell to 566 yen: -19% compared to yesterday's closing. The cost to insure against the failure of TEPCO, expressed by the derivatives CDS (Credit default swaps) to five years on the company's debt, has shot up to reach a record level of 475 basis points, compared to an average of 40 basis points before the 'beginning of the crisis.
"While we can not know the details about exactly how the government intends to nationalize TEPCO, as long as concerns remain about a possible government control, investors will do anything to get rid of the titles," said Hajime Nakajima, trader at Cosmo Securities Reuters. The government continues to throw water on the fire.
"Today our priority is the same: to indicate that TEPCO must do everything possible to regain control of the situation in the plant in Fukushima. The company must prepare to bear the consequences of the disaster, "said Yukio Edan, a spokesman for the executive, the Nikkei business daily.
After more than two weeks after the tsunami there are still hopes to be able to contain the nuclear disaster. Yesterday the Japanese government has spoken of a partial melting of fuel rods in the second reactor, while TEPCO has confirmed the presence of traces of plutonium in the soil surrounding the plant.
"The situation remains unpredictable," confirmed Naoto Kan, Japanese Prime Minister. Precisely for this reason last week TEPCO began to negotiate with Japanese banks to obtain emergency credit of up to $ 25 billion. According to the company accounts, the debts of TEPCO at the end of December 2010 was approximately $ 92 billion, of which 64 billion in bonds.
This year $ 4.8 billion of bond debt are due. Other 5.6 billion will expire in 2012. The costs for the refinancing of debt, combined with compensation for the damages of the disaster could bring the power company to collapse. But before it's too late, the State could intervene to save the situation.
Paying his own pocket a portion of the damage. 
The output of Koichiro Gemba was promptly contradicted by other official sources. A Japanese government spokesman said that "no government organization would be thinking of a nationalization." TEPCO has confirmed that it is not aware of any such plan. The alarm, however, continues to be high and, as reported today by the German financial newspaper Handelsblatt, behind the rumors about a possible government control of TEPCO, there would be concerns for "damages to the victims of nuclear catastrophe, which could become very high and impossible to pay for the company that operates the reactors.
The same version of events is reported by Yomiuri, referring to talks with "some members of the government" who would have spoken of the possibility that the state, acquiring a controlling stake, "TEPCO to help pay for the damage of the nuclear ". The markets, meanwhile, are already preparing.
Today the exchange of securities to TEPCO Tokyo Stock Exchange was suspended for excess downwards. The shares fell to 566 yen: -19% compared to yesterday's closing. The cost to insure against the failure of TEPCO, expressed by the derivatives CDS (Credit default swaps) to five years on the company's debt, has shot up to reach a record level of 475 basis points, compared to an average of 40 basis points before the 'beginning of the crisis.
"While we can not know the details about exactly how the government intends to nationalize TEPCO, as long as concerns remain about a possible government control, investors will do anything to get rid of the titles," said Hajime Nakajima, trader at Cosmo Securities Reuters. The government continues to throw water on the fire.
"Today our priority is the same: to indicate that TEPCO must do everything possible to regain control of the situation in the plant in Fukushima. The company must prepare to bear the consequences of the disaster, "said Yukio Edan, a spokesman for the executive, the Nikkei business daily.
After more than two weeks after the tsunami there are still hopes to be able to contain the nuclear disaster. Yesterday the Japanese government has spoken of a partial melting of fuel rods in the second reactor, while TEPCO has confirmed the presence of traces of plutonium in the soil surrounding the plant.
"The situation remains unpredictable," confirmed Naoto Kan, Japanese Prime Minister. Precisely for this reason last week TEPCO began to negotiate with Japanese banks to obtain emergency credit of up to $ 25 billion. According to the company accounts, the debts of TEPCO at the end of December 2010 was approximately $ 92 billion, of which 64 billion in bonds.
This year $ 4.8 billion of bond debt are due. Other 5.6 billion will expire in 2012. The costs for the refinancing of debt, combined with compensation for the damages of the disaster could bring the power company to collapse. But before it's too late, the State could intervene to save the situation.
Paying his own pocket a portion of the damage.
- TEPCO Plunges 20%, Company Confirms CEO Is In The Hospital (30/03/2011)
- Once Again, TEPCO Opens "Ask Only" But There Is One Big Upside To Nationalization Threats (30/03/2011)
- TEPCO President Hospitalized due to Hypertension (30/03/2011)
- Tepco president taken to hospital (30/03/2011)
- To correct the error on the part of TEPCO, we're deleting the previous two posts. If you reblogged them, please tell people TEPCO screwed up and this number is right. (27/03/2011)
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