* Lists assets of $70 mln and liabilities of $1.07 bln as of
* Noteholders to receive 79 pct of stock in reorganized
* Shares fall 46 pct before the bell
March 5 USEC Inc filed for bankruptcy
after struggling with weak prices for the enriched uranium it
supplies to nuclear power plants and difficulties in financing a
Shares of the company, which said in December it expected to
file for bankruptcy protection, fell as much as 46 percent to
$3.01 in premarket trading on Wednesday.
Prices for low-enriched uranium have plummeted more than 30
percent since March 2011, when a tsunami crippled the Fukushima
nuclear power plant in Japan.
Demand for nuclear fuel remains weak, with more than 50
reactors going off line in Japan and Germany since the
Tokyo Electric Power Co, the operator of the
Fukushima nuclear plant, has historically been one of USEC's
largest customers, according to regulatory filings.
USEC, which also counts Exelon Corp and Entergy Corp
among its customers, said it expects to emerge from
bankruptcy protection in 90 to 120 days.
Besides weak demand, USEC has also been hit by delays in
securing funding for its American Centrifuge Project in Ohio.
The company was banking on production from the project after
it ceased enriching uranium at two gaseous diffusion plants
leased from the Department of Energy (DOE).
USEC has spent about $2.5 billion to develop the plant and
needs more than $4 billion to complete it, the company said in
its bankruptcy filing.
The company sought a $2 billion loan guarantee from the DOE,
but the government proposed a cost-sharing program to
demonstrate the capability of the centrifuge technology.
The $350 million research and development program, 80
percent funded by DOE, has been extended through April 15.
USEC said it would continue to supply its customers from
USEC's plan of reorganization, backed by those holding about
65 percent of the company's debt and investors Toshiba Corp
and Babcock & Wilcox Investment Co, will replace USEC's
debt and stock with a new debt issue totaling $240.4 million and
Noteholders will get $200 million of new debt and a 79
percent stake in the reorganized company.
Toshiba and Babcock & Wilcox Investment will each receive
$20.19 million of new debt and 8 percent of the new shares.
Babcock & Wilcox Investment is a unit of power generation
systems maker Babcock & Wilcox Co.
Existing USEC stockholders will receive 5 percent of the new
shares. The company's proposed reorganization plan requires
USEC listed assets of $70 million and liabilities of $1.07
billion as of Dec. 31.
The Bethesda, Maryland-based company has 505 employees.
USEC's legal advisor for the restructuring is Latham &
Watkins LLP, its financial advisor is Lazard, and its
restructuring advisor is Alix Partners LLP.
The case In re: USEC Inc, No.14-10475, U.S. Bankruptcy
Court, District of Delaware.