– Company Will Emerge in September as Centrus Energy Corp. –
BETHESDA, Md.--(BUSINESS WIRE)--Sep. 5, 2014--
USEC Inc. (NYSE: USU) today announced that the U.S. Bankruptcy Court for
the District of Delaware has confirmed the Company’s Plan of
Reorganization and that it will emerge from Chapter 11 restructuring
under the name Centrus Energy Corp. when the Plan becomes effective
later in September.
The confirmation of the Plan of Reorganization is the last major court
step in the Chapter 11 bankruptcy process that USEC began March 5, 2014.
The Plan received overwhelming support from investors who hold the
Company’s convertible notes and preferred equity. The Company
anticipates that the Plan will become effective later in September,
subject to satisfying all conditions for emergence from bankruptcy
established under the Plan. The new common stock to be issued under the
Plan is also expected to begin trading on the effective date. The new
common stock is expected to trade on the New York Stock Exchange under
the ticker symbol “LEU”.
“We are completing the final steps of a restructuring process that will
strengthen our balance sheet and will enable the company to build on its
decades of reliability and technical innovation,” said John Welch,
president and chief executive officer of USEC Inc. “Since our voluntary
filing in March, we have moved to accomplish the objectives of this
process. We are now in a stronger position to continue serving the
nuclear fuel needs of our utility customers around the world and the
national and energy security needs of the United States.
“I want to thank our customers, suppliers, business partners and our
employees for their support throughout this process. With their backing,
we have taken a major step forward and are prepared to move ahead as
Centrus Energy Corp.,” Welch said.
The reorganization addresses the October 2014 maturity of the Company’s
convertible notes and strengthens the company’s balance sheet. On the
effective date, USEC will replace its $530 million debt and its
preferred stock with a new debt issue totaling $240.4 million and new
common stock. The new debt issue would mature in five years and can be
extended for an additional five years subject to certain conditions. The
noteholders would receive $200 million of the new debt and approximately
79 percent of the common stock. Preferred investors would each receive
$20.19 million of the new debt and approximately 8 percent of the new
common stock. Current common stockholders would receive approximately 5
percent of the new common stock in exchange for the existing common
stock. Distribution of the new common stock is subject to dilution on
account of a new management incentive plan.
A new board of directors will provide corporate governance oversight and
strategic direction beginning on the Plan’s effective date. Throughout
the bankruptcy process, the Company has continued to serve its customers
and meet all its obligations to its customers and vendors. It will
continue to do so when it emerges as Centrus Energy Corp. USEC ended the
second quarter of 2014 with $123 million in cash and will not require an
external source of exit financing upon emergence.
The new corporate name, Centrus Energy Corp., symbolizes the key
attributes of the reorganized company. The name “Centrus” reflects the
role the company’s advanced centrifuge uranium enrichment technology
will play in its future and conveys the strength, reliability,
leadership, innovation, technology and energy that are the key driving
forces behind the company. The Company will operate as Centrus on the
effective date of the Plan. The operations and the names of the
Company’s subsidiaries will remain unchanged after emergence from
bankruptcy.
“We are pleased to enter the next era of our company’s history as
Centrus,” said Welch. “As we take the steps necessary to meet our
near-term obligations to provide our customers with nuclear fuel, we
continue to keep our eye on their long-term fuel requirements and our
nation’s national security requirements that we can meet with advanced
centrifuge technology.
“While there is work to be done in this challenging market environment,
we are confident that with a stronger financial foundation, Centrus is
well positioned to build on our record of reliability and innovation to
supply enriched uranium fuel in a safe, secure, profitable and
environmentally responsible manner.”
USEC Inc., a global energy company, is a leading supplier of enriched
uranium fuel for commercial nuclear power plants.
Forward-Looking Statements
This press release contains “forward-looking statements” within the
meaning of Section 21E of the Securities Exchange Act of 1934 - that is,
statements related to future events. In this context, forward-looking
statements may address our expected future business and financial
performance, and often contain words such as “expects”, “anticipates”,
“intends”, “plans”, “believes”, “will” and other words of similar
meaning. Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. For USEC, particular risks and
uncertainties that could cause our actual future results to differ
materially from those expressed in our forward-looking statements
include, but are not limited to the impact of and risks related to USEC
Inc.'s “pre-arranged” case under Chapter 11 of the bankruptcy code
including risks related to satisfying the conditions for the
effectiveness of USEC Inc.’s plan of reorganization, the impact of any
delay or inability to satisfy such conditions, the impact of a potential
de-listing of our common stock on the NYSE, and the impact of our
restructuring on the holders of our common stock, preferred stock and
convertible notes and other risks and uncertainties discussed in our
filings with the Securities and Exchange Commission, including our
Annual Report on Form 10-K and quarterly reports on Form 10-Q, which are
available on our website www.usec.com.
We do not undertake to update our forward-looking statements except as
required by law.
Source: USEC Inc.
USEC Inc.
Investors:
Steven Wingfield, 301-564-3354
or
Media:
Paul
Jacobson, 301-564-3399
