USEC Seeking Restructuring Plan Endorsement From Creditors
The United States Enrichment Corporation is seeking endorsement from creditors for its ongoing restructuring plan. The U.S. Bankruptcy Court approved the act yesterday.
Beginning July 12, the company will solicit votes from two thirds of its beneficiaries in efforts to offset $530 million in debt.
In March, USEC announced its filing for Chapter 11 bankruptcy.
Company spokesman Paul Jacobson says when USEC accrued the debt 3 years ago, the nuclear power business was in a better economic position.
“At the time USEC sold those notes, the global nuclear power industry was experiencing a renaissance. A lot of reactors were planned and there was growing demand,” Jacobson said.
Jacobson says recent events, including the 2011 nuclear accident in Fukishima, Japan have caused a recession in enrichment technology. Now USEC seeks equilibrium for the corporate balance sheet.
“We went to the bankruptcy court and worked with our creditors to restructure this debt into something new, where these creditors will receive new notes but they will also gain significant ownership of the company,” Jacobson said.
Jacobson says the Paducah Gaseous Diffusion Plant is still on track to de-lease and return to the Department of Energy in October.
If the restructuring plan is approved, it will be reviewed by the US Bankruptcy Court in September.