USEC Inc (NYSE: USU) said it expected to file for bankruptcy as part of a deal with its bondholders.
According to Reuters, the uranium enrichment company said it planned to file a prearranged Chapter 11 petition in the first quarter of 2014 in the U.S. Bankruptcy Court for the District of Delaware. USEC reached an agreement with bondholders to replace about $530 million in convertible notes with new debt and equity. The company reportedly has a total debt of $640.4 million and cash and equivalents of $128.4 million as of September 30, Reuters said.
The U.S. Department of Energy funds about 80 percent of USEC’s American Centrifuge Project in Ohio. That funding is scheduled to end in January, the article said.
USEC earlier this month shipped the last cylinders of low enriched uranium from the Port of Baltimore to the Paducah Gaseous Diffusion Facility in Kentucky as part of the Megatons to Megawatts program.
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