USec is suing DOE for breach of contract. The gov't isn't giving loans and grants to USec, they're tapping the taxpayer for RD&D funds for a project that may never be built. If built, years away. DOE currently owns RD&D assets and IP so congress funding RD&D effectively funds DOE. USec only gets project back if they commercialize by proving project viable and can finance it. USec can't finance project without ruining common equity either through restructure bankruptcy or a combination of both. CCJ has hired Goldman Sachs for possible bid for stake in Urenco. Areva , Toshiba, and private equity group are also likely bidders.CCJ stake in Urenco a would be a good move to vertical integration since Urenco is highly profitable and New Mexico plant is taking large portion of USA enrichment market.
Short interest in USec has nothing to do with believing in nuclear energy. Comparing CCJ to USU same as comparing Toyota to Yugo. USec is in deep trouble, no longer an enricher and stuck being a middleman for Russian SWU at half or less current HEU deal. That's easy loss of 75% minimum revenue going forward 2014 while being liable for millions in Paducah closure, current debt, future debt if they can get it, and millions owed on pensions. Backlog includes large portion AcP contracts that can't be fulfilled for many years even if AcP is ever built. USec can't build Acp without selling out the project because of finances. 10k says they haven't been able to sign new contracts. They've covered their a$$es by screaming out warnings through disclosure. People playing with fire get burned