Friday, April 8

Report: Japan is considering nationalizing Tokyo Electric

TOKYO - the Japanese Government could discuss a possible nationalization of Tokyo electric power, among other things to deal with the operator of the facility in the middle of the country's nuclear disaster, a senior Minister said on Tuesday. Japan plug nuclear power plant leak children to school in Japan Nuke crisis cosmic log back: how radiation will change Japan expats lend a hand in Japan, company offers "Guerrilla style" Japan Nuke ' condolence money ' 74 minutes updated on 4/6/2011 2: 39: 09 PM + 00: 00 Radiation leak stopped at Fukushima plant motion of aftershocks images of chaos, destruction

The future of Asia's largest utility was made earthquake in question since 11 March and tsunami hit its Fukushima Daiichi nuclear complex, so it emitted radiation. Its shares are decreased by 70 percent and the costs for the insurance of his debt against default rose 10 times.

National strategy Minister Koichiro Hemba said a discussion on rescue operations for Tokyo Electric in response to a Yomiuri newspaper report it was possible to temporarily nationalize floated some members of the Japanese Government that a plan, the company was has.

"Of course it is possible that electric is it various debates about the State of Tokyo" Hemba was quoted Agency the question of Kyodo news after the possibility of nationalisation.

The Yomiuri reported that some members of the Government had proposed a plan for the State to take a majority stake in electric Tokyo, also known as TEPCO, and help him to pay for damage from the accident.

The crisis seemed over the last few days with plutonium found in the ground on Tuesday, rattling escalate already shaky financial markets.

Story: Japanese nuclear utility apologizes again and again

Heavy debt burden
Chief Cabinet Secretary Yukio Edano had earlier on Tuesday said that the Government was not currently checked nationalization of utility.

"At this point, it is my understanding that not such a move are considering State institutions." The Government will be directed by will do these things TEPCO, to resolve this situation and those who are affected, "he said."

Tokyo Electric spokesman Hajime Motojuku has a plan for the nationalization unaware stated: "our first and greatest priority at present is the nuclear power plant accident to prevent further deterioration," he said.

Shares were untraded due to a flood of sell orders to 566 Yen to 19 percent from the close on Monday Tokyo Electric. The company has lost $30 billion in the market value since the March 11 disaster.

To a record high of 475 basis points on Monday on Markit, expanded the dissemination on Tokyo Electric 5-year credit default swaps against only 40 points before the crisis.

Hajime Nakajima, a distributor of Cosmo securities, said that investors by the nationalization were terrified to talk.

"Although as can be seen exactly the Government details to nationalize the company, as long as there is concern that Tepco may be nationalized, investors want to hold the stock not." "Passive funds sell to."

In a step to its finance based launched Tokyo electric power talks Japan's largest banks for emergency loans of up to $25 billion, sources told of Reuters last week.

The utility that provides about one-third of the Japanese population had 432 billion yen in cash and cash equivalents and the end of December and 7.5 trillion yen in the outstanding debt, according to its conclusion.

Of the roughly $64 billion in outstanding bonds, the company is due to repay $4.8 billion this year, and another $5.6 billion in the year 2012, emphasises the importance of the refinancing of its funding must comply with this. ($ 1 = 81.705 Yen)

Copyright 2011 Thomson Reuters.

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