USEC Inc. (NYSE: USU) filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware as part of a financial restructuring plan. USEC said it expects to emerge from bankruptcy in 90 to 120 days.
USEC ended 2013 with a cash balance of $314 million. After meeting it payables in the first quarter 2014, the company expects to have a cash balance of at least $60 million by March 31. It’s work on the American Centrifuge uranium enrichment facility and in transitioning the Paducah Gaseous Diffusion Plant in Kentucky back to the U.S. Department of Energy will continue during the bankruptcy. One of USEC’s biggest customers was Tokyo Electric Power Co., the operator of the Fukushima Daiichi nuclear power plant in Japan.
The restructuring calls for replacing USEC’s $530 million debt and all of its preferred and common stock with a new debt issue totaling $240.4 million and new common stock. Toshiba and Babcock & Wilcox (NYSE: BWC) would each receive $20.19 million of the new debt and approximately 8 percent of the new common stock, and the noteholders would receive $200 million of the new debt and approximately 79 percent of the common stock. Existing stockholders would receive 5 percent of the new common stock.
The restructuring plan support agreements entered into by Toshiba and Babcock & Wilcox and other materials related to the filing can be found in an 8-K filed today with the Securities and Exchange Commission.
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