Japan approves Tepco turnaround plan, clears way for more state funding

|By:, SA News Editor

Tokyo Electric Power (TKECF, TKECY) wins government approval for a restructuring that will help pave the way for another ¥4T ($38.3B) in additional state funding.

An important part of the plan is for the restart of two reactors at another facility in northern Japan, which faces strong criticism after the company failed to take proper precautions at the Fukushima plant, which was hit by an earthquake and tsunami in 2011.

The new plan does not offer a clear path for a return to financial health as Tepco struggles with the high costs of cleaning up Fukushima and compensating those in the area affected by the release of high levels of radiation.