Tepco “We deny press’s misinformation when it affects the stock price.”

Posted by Mochizuki on December 5th, 2013

http://fukushima-diary.com/2013/12/tepco-we-deny-presss-misinformation-when-it-affects-the-stock-price/

Tepco makes official announcements to deny “misinformation” by press, on both of their websites in English and Japanese occasionally.

In the press conference of 11/29/2013, Tepco’s spokesman stated they publish those announcements to deny “misinformation” when they think it may affect the company stock price.

The reason why they deny it when it may affect the stock price wasn’t explained.

On their English website, they recently made those announcements on Sep 21, Sep 24, Sep 26, Nov 8, and Nov 22.

This is the latest announcement below.

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With Respect to ‘Another Moral Hazard of a Banking Organization Financing TEPCO Proceeding’ on the Page 28 of a Morning Issue on Tokyo Shimbun as of November 22, 2013

On November 22, 2013, Tokyo Shimbun issued an article on the page 28 of its morning edition saying “A banking organization financing TEPCO has been switching its uncollateralized bonds to the collateralized utility bonds. The utility bonds have priority over the damage compensation for victims of Fukushima NPS accident, in case of TEPCO’s bankruptcy. Government of Japan expresses concern that the compensation might fall behind, in case it resolves and disposes of TEPCO. However, the government pretends not to see the act of the banking organization which could deteriorate the situation. A moral hazard (lack of a sense of morality) is proceeding, which is more vicious than the finance for gang groups.”

In order for TEPCO to steadily implement the longitudinal decontamination, or to fulfill our societal responsibility to supply with stable electricity, it is inevitable for us to receive loans from banking organizations. Comprehensive Special Business Plan approved in May 2012 includes such supportive measures as for all affiliated banking organizations to give TEPCO credit via refinancing etc. until TEPCO restores its independent funding such as rejoining a bond market etc., following the outcomes at the conference between Nuclear Damage Liability Facilitate Fund and us.
However, taking our current situation into consideration, it is very difficult for us to take a loan from a bank organization unconditionally, therefore, we try to obtain loans by issuing collateralized private-placement bonds, based on Electricity Business Act, Article 37.

The issue status for the private-placement bonds is released in handouts etc. intended for investors etc on our web-site.

Yesterday (on November 21), we gave these above circumstances to Tokyo Shimbun as a response to the interview with that press, though all our responses were omitted in that article, in addition, the press mentioned there financing for gang groups completely irrelevant to us saying “A moral hazard (lack of a sense of morality) is proceeding, which is more vicious than the finance for gang groups.” The article is inappropriate as a press report which is supposed to be accurate, fair, and responsible, and we regard the article as a one-sided media report seriously lacking in fairness.

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http://www.tepco.co.jp/tepconews/library/movie-01j.html

http://www.tepco.co.jp/en/index-e.html

http://www.tepco.co.jp/en/announcements/2013/1232419_5502.html