USEC Emerges from Bankruptcy Under New Name

Sep 30, 2014

The United States Enrichment Corporation emerged from Chapter Eleven Bankruptcy with a new name after completion of its restructuring plan today.

The business enriched uranium at the Paducah Gaseous Diffusion Plant before it closed last year. $530 million in debt (originally due next month) forced the company to declare bankruptcy back in March.

Credit Centrus Energy

Now known as Centrus Energy Corporation, the company is led by a new 11-member board of directors. Five of those return from the USEC age, with five more appointed as part of the restructuring plan.

The last spot is currently vacant.

In a release, Centrus President and CEO John Welch said he feels the move improved the business's capital structure without disruption of its clientele.

Restructuring Details:

The company issued 9 million shares of new common stock this morning as it opened for trade on the New York Stock Exchange. 

Centrus will issue new debt totaling $240.4 million that matures in five years; certain conditions may bring it to 10.

$200 million of the new debt and approximately 79 percent of the new common stock will go to noteholders.

Current common stockholders will receive approximately 5 percent of that new stock in exchange for their existing common stock.