This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-15587422
The article has changed 3 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Tepco to get $11bn government aid after plan approval | Tepco to get $11bn government aid after plan approval |
(about 4 hours later) | |
Tokyo Electric Power Company (Tepco) is to receive 900bn yen ($11.5bn; £7bn) in bailout funds after the government approved its business plan. | |
The funds are part of the government's bailout plan for Tepco, which has just reported a six month loss of 627bn yen. | |
The earthquake and tsunami in March damaged its Fukushima Daiichi nuclear plant, resulting in radiation leaks. | The earthquake and tsunami in March damaged its Fukushima Daiichi nuclear plant, resulting in radiation leaks. |
It may have to pay $100bn (£62bn) in compensation claims relating to those leaks. | |
About 80,000 people living with 20km (12 miles) of the Fukushima plant were forced to abandon their homes after the radiation leaks and many businesses were forced to shut down. | About 80,000 people living with 20km (12 miles) of the Fukushima plant were forced to abandon their homes after the radiation leaks and many businesses were forced to shut down. |
Tepco reported a net loss of 627bn yen for the six months from April to September, due to the costs of dealing with the crisis at Fukushima. | |
That figure compares with a net profit of 92.3bn yen in the same period last year. | |
'Thorough restructuring' | 'Thorough restructuring' |
The losses, coupled with the huge compensation claims it faces, had raised concerns about the long-term prospects of the company, prompting the government to step in to bail out the company. | |
The government set up a special fund to help Tepco compensate the victims and maintain its operations. | |
However, the government had asked the company to submit a business plan indicating how it intended to turn around its fortunes, in order to receive the funding. | |
"I urge Tepco and the bailout fund to implement sincere compensation and thorough restructuring, taking into account that they are borrowing a massive amount of money from Japanese citizens," Japan's trade minister Yukio Edano said. | "I urge Tepco and the bailout fund to implement sincere compensation and thorough restructuring, taking into account that they are borrowing a massive amount of money from Japanese citizens," Japan's trade minister Yukio Edano said. |
The company submitted its proposal last week, saying it would help it cut almost 2.5tn yen in costs over the next 10 years. |