USU: What You Need to Know or Be Warned About USEC
Post# of 777
Posted On: 07/04/2014 10:32:53 PM
USU: What You Need to Know or Be Warned About USEC Inc
http://www.smallcapnetwork.com/Is-Small-Cap-N...1/id/1878/
On March 5th, USEC Inc announced that it had entered into a plan support agreement with each of Babcock & Wilcox Investment Company and Toshiba Corporation and Toshiba America Nuclear Energy Company as holders of the Company's Series B-1 12.75% convertible preferred stock regarding a voluntary Chapter 11 pre-arranged plan of reorganization of the Company. In the bankruptcy documents, USEC listed assets of $70 million and liabilities of $1.07 billion at the end of last year. The filing contained the following statement:
The Company urges that caution be exercised with respect to existing and future investments in its securities as the Plan, if approved, by the Bankruptcy Court and implemented in accordance with its terms, will substantially change the Company's capital structure.
The filing was also accompanied by a press release with the following summary:
Files voluntary, prearranged plan of reorganization under Chapter 11.
Plan supported by majority of noteholders and by preferred investors, Toshiba and B&W.
Daily operations continue unaffected.
Filing relates only to parent company.
USEC to fully meet obligations to customers and suppliers as operations continue.
USEC terminates Tax Benefit Preservation Plan.
In mid May, USEC Inc reported a 54% first quarter revenue fall to $148.6 million and a net loss of $50.8 million verses a net loss of $2.0 million due to a reduction in separative work unit (SWU) revenue compared to the same period in 2013 following the cessation of enrichment at the Paducah Gaseous Diffusion Plant (GDP) in the second quarter of 2013. The earnings report also noted:
Given the uncertainties of these transitions and the uncertain and incremental nature of federal funding for work under the ACTDO Agreement, our guidance for USEC financial results and metrics for 2014 will be limited.
This week though, USEC Inc apparently began soaring on news about new $2.5 million in funding from the US Department of Energy with TheStreet noting:
The funding arrives after an amendment to an agreement with UT-Battelle, operator of Oak Ridge National Laboratory, for more research on American Centrifuge technology. USEC first entered into the fixed price contract for approximately $33.7 million, paid out at $6.7 million per month from May 1 to Sept. 30.
However, a new article on Seeking Alpha has concluded:
Post reorganization, with convertible note holders taking the lion's share of value, equity holders will be left with less than 5% of the current trading value of the stock.
http://www.smallcapnetwork.com/Is-Small-Cap-N...1/id/1878/
On March 5th, USEC Inc announced that it had entered into a plan support agreement with each of Babcock & Wilcox Investment Company and Toshiba Corporation and Toshiba America Nuclear Energy Company as holders of the Company's Series B-1 12.75% convertible preferred stock regarding a voluntary Chapter 11 pre-arranged plan of reorganization of the Company. In the bankruptcy documents, USEC listed assets of $70 million and liabilities of $1.07 billion at the end of last year. The filing contained the following statement:
The Company urges that caution be exercised with respect to existing and future investments in its securities as the Plan, if approved, by the Bankruptcy Court and implemented in accordance with its terms, will substantially change the Company's capital structure.
The filing was also accompanied by a press release with the following summary:
Files voluntary, prearranged plan of reorganization under Chapter 11.
Plan supported by majority of noteholders and by preferred investors, Toshiba and B&W.
Daily operations continue unaffected.
Filing relates only to parent company.
USEC to fully meet obligations to customers and suppliers as operations continue.
USEC terminates Tax Benefit Preservation Plan.
In mid May, USEC Inc reported a 54% first quarter revenue fall to $148.6 million and a net loss of $50.8 million verses a net loss of $2.0 million due to a reduction in separative work unit (SWU) revenue compared to the same period in 2013 following the cessation of enrichment at the Paducah Gaseous Diffusion Plant (GDP) in the second quarter of 2013. The earnings report also noted:
Given the uncertainties of these transitions and the uncertain and incremental nature of federal funding for work under the ACTDO Agreement, our guidance for USEC financial results and metrics for 2014 will be limited.
This week though, USEC Inc apparently began soaring on news about new $2.5 million in funding from the US Department of Energy with TheStreet noting:
The funding arrives after an amendment to an agreement with UT-Battelle, operator of Oak Ridge National Laboratory, for more research on American Centrifuge technology. USEC first entered into the fixed price contract for approximately $33.7 million, paid out at $6.7 million per month from May 1 to Sept. 30.
However, a new article on Seeking Alpha has concluded:
Post reorganization, with convertible note holders taking the lion's share of value, equity holders will be left with less than 5% of the current trading value of the stock.
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