Nuclear Meltdown

Japan to allow TEPCO to remain listed

(Agencies)
Updated: 2011-04-21 16:56

TOKYO - The Japanese government will allow Tokyo Electric Power Co (TEPCO), the operator of the crippled Fukushima nuclear power plant, to remain a listed company even after being saddled with an unknown amount for compensation for crisis victims, sources said.

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The government plan, which is expected to be unveiled as early as next week, is made up with a scheme to set up a fund that would buy preferred shares from TEPCO, the people familiar with the matter said.

The sources could not be identified because the information is not yet public.

"Regarding the compensation for those affected by the nuclear power plant, we would like to go in line with the government law for nuclear compensation. Also we want to act appropriately based on the government guidance," a TEPCO spokesman said.

The sources said the fund would provide loans to TEPCO for it to pay compensation to those affected by the crisis at the nuclear plant in northern Japan, which was damaged by the March 11 tsunami.

TEPCO will repay the money to the fund with its cash and also through dividend on the preferred shares, the people said. ?

Other utilities including Kansai Electric Power and Chubu Electric Power Co will contribute to the fund, they said, adding that it will be also funded by the special purpose bonds the government would issue.