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Bankruptcy looms for uranium company USEC

Uranium company USEC says expects to file for bankruptcy  Dec 16, 2013 Dec 16 (Reuters) – USEC Inc, a supplier of enriched uranium for commercialnuclear power plants, said it expected to file for bankruptcyprotection as part of a deal with its bondholders, sending the company’s shares down as much as 52 percent.

USEC, which has been struggling to fund projects and has posted losses for the past four quarters, said it expected to file a prearranged Chapter 11 petition in the first quarter…….

The company said in November that government funding for its $350 million American Centrifuge Project in Ohio would end in January.

The project, which is 80 percent funded by the U.S. Department of Energy (DOE), is designed to produce low-enriched uranium used to make nuclear fuel. It was scheduled to be completed this month.

USEC wound down operations at another uranium enrichment plant earlier this year. The company is in the process of handing over the plant in Paducah, Kentucky to owner DOE.

 

Although power companies are building five reactors in southeastern United States, nuclear power generation is expected to decline. This will lower demand for uranium…

Moreover, uranium prices are yet to recover after they plummeted following the March 2011 meltdown at Japan‘s Fukushima Daiichi atomic power plant…..http://uk.reuters.com/article/2013/12/16/usec-bankruptcy-idUKL3N0JV2CI20131216

December 17, 2013 - Posted by | business and costs, Uranium, USA

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