In the first quarter of 2014, United States Enrichment Corporation, USEC Inc., plans to make a request for bankruptcy, company’s report published on December 16 says. USEC manages the only US uranium enrichment plant.
USEC Inc. expects to file a prearranged and voluntary Chapter 11, a chapter of Title 11 of the United States Bankruptcy Code, petition for relief in the United States Bankruptcy Court for the District of Delaware. Such a filing is not expected to have any effect on on-going operations, suppliers, deliveries to customers or the American Centrifuge research, development and demonstration program. Under the terms of the agreement, the company will replace approximately $530 million in convertible notes that are scheduled to mature in October 2014 with new debt and equity. The agreement with the noteholders, calls for the company’s $530 million debt to be replaced with a new debt issue totaling $200 million. The company plans to issue new shares for USEC shareholders.
In May 2013, USEC announced shutdown of production in Paducah Gaseous Diffusion Plant in Kentucky. At the moment the company works on the American Centrifuge project. Its completion is expected after the year 2017 and the total cost will be $6.5 billion.
Along with French Areva and Russian Techsnabexport, USEC is one of major suppliers of enriched uranium for nuclear power plants. The company carries out US-Russia project Megatons to Megawatts Program, under this Agreement Russia agreed to supply the United States with low-enriched uranium, obtained from high-enriched uranium found to be in excess of Russian defense purposes. The US agreed to purchase the low enriched uranium fuel.
In 2012, the company’s revenue was $1.92 million. In the third quarter 2013, USEC registered a $44.3 million dead loss.
