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Fukushima Cleanup Talks Put Tepco Survival Risk in Focus

  • Tepco sees insolvency risk if decommissioning taken in one go
  • Electricity utilities’ bond spreads may widen: BNP Paribas
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Tokyo Electric Power Co. is still struggling to put the Fukushima nuclear disaster behind it, admitting this week that paying for decommissioning the plant in one go risks leaving it insolvent.

The cost to insure debt in Japan’s biggest utility climbed to a seven-month high of 89 basis points on Oct. 5 after President Naomi Hirose said after a meeting in Tokyo with a government commission that the company is asking for help in avoiding financial ruin. Tepco has already received state aid for compensation and decontamination.