USEC Files Bankruptcy to Restructure Debt

Bloomberg Businessweek reported this week that enriched uranium producer USEC has filed for bankruptcy protection with a plan to cede control to noteholders. The company states that an oversupply of uranium negatively impacted its business.

According to Businessweek:

USEC is seeking to clean up its balance sheet as it teams with the U.S. government to finance construction of the American Centrifuge plant in Ohio, which will replace USEC’s facility in Paducah, Kentucky. USEC posted net losses in the past two years over costs to end uranium enrichment at the Kentucky plant and return the site to the Energy Department.

Chief Executive Officer John K. Welch said:

By addressing the October 2014 maturity of the convertible notes, USEC will be able to pursue its ongoing business objectives with greater certainty.

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