Tepco Seeks $25 Billion Loans As Future Liability Questions Remain

Author: Dow Jones Newswires, Published on: 23 March 2011

Tokyo Electric Power...is seeking around 2 trillion yen, or $25 billion, in loans to fund repairs at power stations damaged by the March 11 earthquake but questions remain on exactly how much liability the utility, rather than central government, may face in compensation claims down the road - and how it will fund them...For now, it looks like the nation's major banks are willing to provide the cash...A Tepco spokesman said the company is mulling various ways to increase cash...Tokyo government officials warned...that iodine exceeding permissible levels for infants had been detected in tap water in northern parts of the capital...Japan's law means it may be difficult to thrash out where liability lies exactly...[T]he megabanks and trust banks will likely offer Tepco such a large lifeline since they believe the power company has retained a relatively sound balance sheet in recent years. [also refers to Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, Mizuho Financial Group, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking, Mizuho Corporate Bank, Sumitomo Trust & Banking, Chuo Mitsui Trust Holdings, Mitsubishi UFJ Trust & Banking, Mizuho Trust & Banking, Barclays Capital]

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Related companies: Bank of Tokyo-Mitsubishi UFJ (part of Mitsubishi UFJ) Barclays Mitsubishi UFJ Financial Group Mizuho Bank (part of Mizuho Financial Group) Sumitomo Group Sumitomo Mitsui Banking (part of Sumitomo Group) Tokyo Electric Power (TEPCO)