July 08--The process to emerge from planned Chapter 11 bankruptcy will begin July 12 for USEC, Inc., when it will begin soliciting holders of USEC's convertible notes as well as its two preferred stockholders for votes on the company's Plan of Reorganization following Monday's hearing and order by Judge Christopher S. Sontchi in the United States Bankruptcy Court for the District of Delaware. USEC's two preferred stockholders are Toshiba Corporation and Babcock & Wilcox Company.
USEC filed the Disclosure Statement describing the Plan of Reorganization with the court on March 5, 2014, and updated it on June 19. No objections were raised prior to Monday's hearing. The solicitation package, including the Disclosure Statement and ballot, will be sent to those entitled to vote as of the record date of July 3, 2014. The deadline for voting is Aug. 11.
The two classes of voting creditors will be asked to vote on the Plan of Reorganization during a 30-day voting period. USEC filed a pre-arranged case under Chapter 11 of the United States Bankruptcy Code on March 5. The Plan of Reorganization is supported by the holders of approximately 66 percent of the principal amount of the $530 million of notes outstanding. The Plan of Reorganization is also supported by the two holders of the Company's preferred equity who will also be entitled to vote on the Plan of Reorganization. The holders of USEC's common equity are assumed to have rejected the Plan and, thus, the votes of such holders will not be solicited during the upcoming period.
Following the voting period, the Plan of Reorganization is expected to be reviewed by the court at a confirmation hearing scheduled for Sept. 5.
"We have made steady progress in recent months to restructure USEC and we anticipate emerging from Chapter 11 protection with an improved balance sheet," John K. Welch, USEC president and chief executive officer, said.
When the decision to file planned bankruptcy was announced, Welch said the company undertook the restructuring to strengthen USEC's balance sheet, enhance their ability to sponsor the American Centrifuge technology and improve the company's long-term business opportunities.
"We are taking many steps in advance of emerging as a restructured company. We are working closely with Oak Ridge National Laboratory to continue the demonstration of the American Centrifuge technology," Welch said. "Our Kentucky employees have done an outstanding job of preparing the Paducah Gaseous Diffusion Plant for de-lease and return to the U.S. Department of Energy in October. And we continue our record of delivering low enriched uranium to our nuclear utility customers, on time and within specifications."
Frank Lewis can be reached at 740-353-3101, Ext. 252, or on Twitter @FrankLewispdt.
Reach at or 740-353-3101.
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