Posted on 03/30/2011 10:24:03 PM PDT by TigerLikesRooster
Thursday, March 31, 2011
Tepco Claims May Reach Y10-11tln If Nuclear Problems Drag On
TOKYO (Dow Jones)--Tokyo Electric Power Co. (9501) could face compensation claims of up to Y10-Y11 trillion if problems at the stricken Fukushima Daiichi nuclear plant cannot be resolved in the next two years, according to estimates released Tuesday by Bank of America Merrill Lynch.
"Shareholders are very likely to be held liable, through capital reductions of a certain amount," research analyst Yusuke Ueda wrote in the report. "But given the principle of maintaining stable supplies of electric power, a scheme involving a default on the company's bonds is very unlikely to be adopted."
The brokerage estimates that compensation claims may come to less than Y1 trillion if troubles at the plant can be resolved within about two months. If it takes up to six months, the claims could reach Y2.4-Y3 trillion.
(Excerpt) Read more at e.nikkei.com ...
P!
I reckoned a week ago that this was going to be the first trillion dollar disaster. Now it is starting to look like at least a quarter of that could be wrapped up in the Fukushima plants alone.
Thats ~$120B.
Ouch.
Oops, I missed the calculation already in the title.
Too late to sue GE?
The suit will probably take ten years.
I doubt that any suit would be successful. No power provider I know gives more than a “best possible” commitment to provide power, not any firm guarantee. Pretty sure that the earthquake and tsunami would count as an accident of nature beyond Tepco’s control.
Sad thing is the loss of power along with the massive destruction of its farmland, fishing, and manufacturing facilities, along with its decimation of its people and their neighbourhoods because of the tsunami will take years to recover.
It is amazing the amount of attention that the "nuclear" part of this is getting given that the real devastation in terms of lives and the economy is the non-nuclear part.
And, not to make light of this, the overwhelming part of Japan's infrastructure and engine of productivity survived just fine.
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