USEC Noteholders Approve Company?s Chapter 11 Bankruptcy Reorg

More than 99 percent of USEC’s noteholders have approved the company’s planned Chapter 11 Bankruptcy reorganization, USEC announced yesterday. The plan still awaits approval by the U.S.  Bankruptcy Court for the District of Delaware in a Sept. 5 hearing. USEC filed for Chapter 11 bankruptcy in March due to a bleak near-term commercial outlook for the uranium enrichment market and $530 million in debt due to creditors this October. USEC’s plan calls for a reorganization of the debt due in October, replacing the current notes and all of the company’s stock with $240.4 million in debt due in five years and new common stock. Investors Toshiba and B&W are supporting the plan and would each receive about $20.2 million in debt, while the noteholders will receive $200 million in debt and 79 percent of USEC’s stock.