USEC Files Plan Of Reorganization Under Chapter 11 - Quick Facts

(RTTNews) - USEC Inc. (USU) announced it is implementing the agreement reached with a majority of the holders of its senior unsecured convertible notes that was announced in December 2013. USEC filed a voluntary petition and a plan of reorganization under Chapter 11 of the bankruptcy code in the U.S. Bankruptcy Court for the District of Delaware. USEC anticipates receiving Court approval for its prearranged plan of reorganization and emerging from Chapter 11 in 90 to 120 days. None of USEC's subsidiaries, including its primary operating subsidiary the United States Enrichment Corporation, have filed for bankruptcy protection.

The company also announced it has reached agreement with its preferred equity investors, Toshiba Corporation and The Babcock & Wilcox Company, to support the restructuring plan.

The plan of reorganization, which is supported by those holding approximately 65 percent of USEC's debt, as well as Toshiba and Babcock & Wilcox, 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. 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, Toshiba and Babcock & Wilcox would each receive $20.19 million of the new debt and approximately 8 percent of the new common stock. Existing stockholders would receive 5 percent of the new common stock.

USEC's board also approved the termination of the company's tax benefit preservation plan, which was originally scheduled to expire on September 29, 2014. The plan has been amended to accelerate the expiration date to March 4, 2014, effectively terminating the plan as of that date.