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USEC intends to file for bankruptcy protection next year

USEC (USU -66%) plans to file a pre-arranged and voluntary Chapter 11 petition in Q1 next year after reaching an agreement with creditors who represent more than 60% of the company's notes.

USEC, which supplies enriched uranium for commercial nuclear power plants, will replace $530M in convertible notes that are scheduled to mature in October 2014 with $200M in new debt, as well as new equity. Noteholders will receive 79% of this equity as common stock and existing shareholders 5%.

In a deal under negotiation, Toshiba and Babcock & Wilcox (BWC), which have a preferred convertible equity investment, would jointly receive 16% of the new shares and $40M in debt in exchange for their existing arrangement.

USEC expects to fully meet its obligations to customers and suppliers as its operations continue.

The company also believes that the strong support of its noteholders will accelerate the restructuring of the debt and equity on its balance sheets.

USEC doesn't expect its subsidiaries to file for bankruptcy protection. (PR)

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Comments (5)
  • DeepValueLover
    , contributor
    Comments (10238) | Send Message
    The #1 short of 2013...congrats to those who got short ~ $28!
    16 Dec 2013, 08:21 AM Reply Like
  • Vicomras
    , contributor
    Comments (4) | Send Message
    A major betrayal of the average american investor who believed they were honestly being informed of the progress the company was making re the development of the American Centrifuge project and their stake in this project moving forward. They were apparently duped. I, for one, hope that all such stockholders come forward to oppose this move and such chapter 11 proceedings. I will also do all I can to lobby Congress to deny support for this theft from those who honestly believed they had a stake in this project while they were being misled by managements true intentions.
    16 Dec 2013, 08:43 AM Reply Like
  • West Coast Commentator
    , contributor
    Comments (171) | Send Message
    Dude - aren't you getting it? They ARE the U.S. government. Only because they pulled a phony "privatization" some years back to fleeze dummies like us doesn't make a difference.


    Disclaimer: Rode part of the way down from $7 a share to almost zilch.
    16 Dec 2013, 12:29 PM Reply Like
  • maddynuke
    , contributor
    Comments (330) | Send Message
    I hope there is a class action suit that punishes the USEC management personally for this deception and theft!! Criminals, liars, and at least clueless managers!


    Perhaps they are playing "chicken" with DOE over the ACP funds at the expense of the long stock holders. We can't blame the "short" sellers for this plummeting stock price....
    16 Dec 2013, 12:28 PM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1466) | Send Message
    No the management really is that horrible, they can't even make it out of 2013 without bankruptcy protection.


    But the insider top managers made a really good salary, signaling all is quiet on the western front.


    Bet they continue to earn multimillion dollar salaries.
    16 Dec 2013, 05:28 PM Reply Like
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