USEC has until Friday to obtain additional Department of Energy funding for the American Centrifuge Project before creditor JP Morgan significantly restricts the amount USEC can spend on the program. On June 1 the lender extended a line of credit that had been funding the project for 15 days, allowing USEC to spend $6 million on the project in the first half of the month. Under the terms of the extension, last Friday USEC was required to submit a report on the amount the company spent on ACP between June 1 and June 7 and the status of negotiations with DOE on obtaining additional funding. USEC did not respond to request for comment on the report Friday.
The company hopes that by the end of the week the Department will be able to provide additional financial support for a research, development and deployment program for American Centrifuge, which could come in the form of a DOE purchase of USEC centrifuge machines. If no such deal is reached, JP Morgan would require USEC to cut spending on the project to no more than $1 million per month starting in July, except for expenses related to the demobilization of the project.
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