Call them the company formerly known as USEC.
A Maryland-based company that wants to build a uranium enrichment plant in southern Ohio announced Tuesday that it has emerged from bankruptcy restructured and with a new name: Centrus.
The company, which declared bankruptcy and saw their reorganization plan approved by the U.S. Bankruptcy Court for the District of Delaware on Sept. 5, 2014, said it has satisfied all conditions from emergence from Chapter 11 bankruptcy. The company began trading on the New York Stock Exchange Tuesday.
The long-troubled USEC, which stands for the United States Enrichment Corporation, has struggled for years to attain the federal funding that it says it needs to commercialize new technology at its uranium centrifuge in Piketon, Ohio. The company declared bankruptcy in March, and quickly announced a plan to reorganize. At the time of their bankruptcy, they were engaged in a two-year federal research and development project aimed at demonstrating the viability of the technology used at the plant. That project has since ended, achieving all its objectives, according to a company spokesman.
Company officials said the bankruptcy was necessary in order to restructure about $530 million in debt to bondholders that was scheduled to mature in October 2014, replacing it with new debt totaling $240.4 million. Under the arrangement approved by the bankruptcy court, the new debt will mature in five years.
The company, the only domestic producer of enriched uranium, has struggled for years to secure government support for its Piketon plant, known as the American Centrifuge Project.
“We strongly believe in the future value that the American Centrifuge technology can provide for domestic uranium enrichment,” said John Welch, president and CEO of Centrus, adding that the new company “will build on the innovation of our employees, America’s leading experts on uranium enrichment, to support the national security needs of the United States governm
India's new prime minister is turning to nuclear energy to ease a power crisis made worse by the cancellation of hundreds of coal mining permits, but he faces scepticism both at home and abroad.
Energy-starved India relies on coal to produce two thirds of its electricity, but power blackouts are common and demand is rising quickly as the economy and middle class expand.
On Wednesday, the Supreme Court cancelled over 200 coal mining permits because the licensing process was deemed illegal, making the need for alternative energy sources yet more pressing.
Prime Minister Narendra Modi has made nuclear a priority as he seeks to fulfil his campaign pledge to kickstart the country's flagging economy.
But to succeed, he will need to convince a sceptical public that nuclear is safe, and dispel foreign proliferation concerns to secure the imports of uranium and technology that India needs to produce atomic energy.
"Concerns of power disruptions raised post the Supreme Court judgement on the coal issue show how reliance on single source of energy is unhealthy," said Amit Bhandari, energy and environment fellow at Gateway House, a Mumbai-based think-tank.
"It makes sense investing in nuclear energy, which provides clean power and a hedge against coal supply shocks."
Let's see what effect this has on the stock next week...
On September 22, 2014, USEC Inc. ("USEC" or the "Company") entered into Amendment No. 008 ("Amendment No. 008") to the agreement dated May 1, 2014 with UT-Battelle, LLC, as operator of Oak Ridge National Laboratory ("ORNL"), for continued research, development and demonstration of the American Centrifuge technology in furtherance of the U.S. Department of Energy's ("DOE") national security objectives (the "American Centrifuge Technology Demonstration and Operations Agreement" or "ACTDO Agreement"). Amendment No. 008 amends the ACTDO Agreement to provide for additional funds of approximately $6.9 million, bringing total funding to approximately $40.7 million. The other terms and conditions of the ACTDO Agreement were not changed by the Amendment.
The ACTDO Agreement provides for continued cascade operations, the continuation of core American Centrifuge research and technology activities, and the furnishing of related reports to ORNL. The agreement is a firm fixed-price contract with a total price of approximately $75.3 million for the period from May 1, 2014 to March 31, 2015. The agreement provides for payments of approximately $6.7 million per month through September 30, 2014 and approximately $6.9 million thereafter. The ACTDO Agreement is incrementally funded. Funds currently allocated to the ACTDO Agreement are expected to cover the work to be performed through October 31, 2014. The agreement also provides ORNL with one additional option to extend the agreement by six months to September 30, 2015. The option is priced at approximately $41.7 million. ORNL may exercise its option by providing notice 60 days prior to the end of the term of the agreement. The total price of the contract including options is approximately $117 million.
The Commerce Department on Friday raised its estimate of gross domestic product to show the economy expanded at a 4.6 percent annual rate. That was in line with Wall Street's expectations.
The best performance since the fourth quarter of 2011 reflected a faster pace of business spending and sturdier export growth than previously estimated.
But consumer spending, which accounts for more than two-thirds of U.S. economic activity, was unrevised as stronger healthcare outlays were offset by weaknesses in recreation and durable goods spending.
We can draw parallels between Obamanomics and FDR's New Deal.
Almost everything FDR did to jump-start growth instead #$%$ it. The rise in the minimum wage kept unemployment intolerably high. Roosevelt’s work programs like the Works Progress Administration, National Recovery Administration and the Agricultural Adjustment Administration were so bureaucratic as to have minimal impact on jobs. Raising tax rates to nearly 80 percent on the rich stalled the economy. Social Security is and always was from the start a Madoff-style Ponzi scheme that will eventually sink into bankruptcy unless reformed.
The most alarming story of economic ignorance surrounding this New Deal era was the tax increases while the economy was faltering. According to economist Burt Folsom, FDR signed one of the most financially devastating taxes: “On April 27, 1942, he signed an executive order taxing all personal income above $25,000 [rich back then] at 100 percent. Congress balked at that idea and later lowered it to 90 percent at the top level.” The New Dealers completely ignored the lessons of the 1920s tax cuts, which just a decade before had unfurled an age of super-growth.
Then there was the spending and debt barrage. Federal spending catapulted from $4.65 billion in 1933 to nearly $13.7 billion in 1941. This tripling of the federal budget in just eight years came at a time of almost no inflation (just 13.1 percent cumulative during that period). Budget surpluses during the prosperous Coolidge years became ever-larger deficits under FDR’s fiscal reign. During his first term, more than half the federal budget on average came from borrowed money.
The cruel irony of the New Deal is that the liberals' honorable intentions to help the poor and the unemployed caused more human suffering than any other set of ideas in the past century.
I like your reasoning. It's almost impossible to value this company, and confusing press releases make matters worth. Fortunately my big positions are doing well today, so I used a little "gambling money" to buy a few share today at $2.01.
Maybe USU has one more short squeeze left in it, but $3 would be my (optimistic) target. If I just lose the money I made in my last foray into USU, that would be okay.
House Republicans will try to make Senate Democrats squirm next week by voting again on a laundry list of energy bills that the Senate has not considered.
The energy package, which will come to the floor Thursday, will contain 13 bills aimed at lowering energy prices through avenues such as the approval of the Keystone XL oil pipeline and increases in oil and natural gas drilling.
Another piece of the package includes legislation to speed up natural gas exports.
The objective is to remind voters that Republicans disagree with President Obama's energy policies and want to reverse them.
Several of the bills aim to block the administration's signature climate change rules for new and existing power plants, which the GOP says will eliminate coal jobs across the country.
“We must enact policies that encourage an American energy revolution,” House Majority Leader Kevin McCarthy (R-Calif.) said in a memo to House Republicans earlier this month.
“That is why we will send to the Senate a single, common-sense energy plan comprised of House-passed bills focusing on production, infrastructure, reliability and efficiency,” he wrote.
Still, Senate Democrats aren’t expected to budge, as a majority of them support the president's energy agenda. There are dissenters, however, including a few red-state senators who are locked in tight reelection races.
House Republican won't stop at floor votes in their battle against the administration's climate policies.
On Wednesday, the House Science, Space, and Technology Committee will hold a hearing on Obama's climate plan.
White House science adviser John Holdren will testify, along with the acting administrator of the Environmental Protection Agency's Office of Air and Radiation, Janet McCabe.
Expect Republicans to drill the two administration officials, who are at the forefront of the president's climate push.
From The Turkish weekly:
Iran considers further action in uranium enrichment if the U.S. intensifies new sanctions, says MP
Iranian parliament will present a bill which will pave the way for Iran to enrich uranium by 60 percent if western powers impose new sanctions, according to an Iranian member of parliament.
Member of parliament’s national security committee, Mohammad Hassan Asafari reacted to sanctions imposed by the U.S. government and said, "The new sanctions show an absence of goodwill from the U.S."
Tasnim News Agency quoted Asafari as saying: "Tehran will immediately respond in the event that the negative approach of Washington in nuclear negotiations continues."
The nuclear talks between the world powers -- dubbed the P5+1 [Russia, China, the U.S. U.K., France and Germany] -- and Iran began last November in Geneva.
On Friday, the U.S. slapped sanctions on over 25 corporations and individuals for allegedly aiding Iran's nuclear program and circumventing international measures aimed at curbing it.
The Iranian lawmaker warned his government will immediately develop and accelerate nuclear progress if the U.S. government insists on its "negative approach" towards the talks.
The International Energy Agency has lowered its forecast for global oil demand growth for the third month in a row, calling the recent slowdown in demand "nothing short of remarkable." The IEA now foresees global oil demand growth of 900K bbl/day in 2014, a decrease of 65K bbl/day vs. last month's forecast and down by 300K bbl/day since July. The agency now expects oil demand to rise by 1.2M bbl/day next year, but that's 100K bbl/day less than it forecast last month.
The U.S. and EU are said to be close to imposing the toughest round of energy sanctions yet, which would hit both Russia's energy industry and companies such as Exxon Mobil (NYSE:XOM) that are working with Rosneft (OTC:RNFTF) and other state-controlled companies. The sanctions reportedly would ban U.S. and European companies from working with Russia on future oil exploration in the Russian Arctic, deep seas and shale rock formations.
Japan's nuclear regulator has given its formal safety sign-off for two reactors at a nuclear plant in the south of the country to restart.
The Sendai plant secured preliminary approval for the restart in July and has now completed a public consultation period.
The regulator says the reactors have met new standards introduced after the Fukushima disaster.
These are the first two reactors to secure this permission.
Now the Sendai plant, in southern Kyushu, must obtain restart approval from local authorities, who are reported to back the move.
It must also pass on-site operational inspections, Kyodo news agency said, with a restart unlikely before December.
All Japan's 48 reactors are currently stopped, but PM Shinzo Abe has been pushing for restarts where possible.
The Japanese public turned against nuclear power after the meltdowns at the Fukushima plant in 2011.
Before the incident, which was caused by a massive earthquake and tsunami, nuclear plants supplied about 30% of Japan's power.
But since then the plants have been closed, either for scheduled maintenance or because of safety fears, and have not been restarted.
Japan's last reactor, at Ohi in western Japan, went offline in September 2013.
Japan is currently relying on extra imports of coal and gas to generate power while its nuclear reactors are idle.
USEC Maintains Involvement in Centrifuge Project
By Randy Leonard
The financially troubled company that had been bumped from managing the American Centrifuge Project, USEC Inc., expects to remain involved in the facility until March and possibly into September of 2015.
Oak Ridge National Laboratory in May took over management of the Piketon, Ohio, project to maintain technology that could be used to manufacture weapons material. At the end of last month, Oak Ridge signed USEC as a subcontractor under UT-Battelle for an additional six months to March 31, with an option to extend to Sept. 30, 2015, according to a statement from the company.
The diminished role for the company, which is dealing with bankruptcy, includes continued cascade operations, research and reporting, but does not include construction or engineering.
Ohio Republican Sen. Rob Portman has said that he hopes to procure funding for the project in a continuing resolution when Congress returns from recess.
Other members of Congress have questioned Energy Department transfers of uranium to the company and the value of propping up the project.
As I said on Aug 31, I wouldn't want to be long USU on Sept 5th!
Even now, I'd let the dust settle and do some due diligence before going long or short.
Polar bears became the first species listed under the Endangered Species Act because they could potentially be harmed by GLOBAL WARMING. But some recent studies have found that many polar bear subpopulations have actually flourished in recent years.
“So, the global estimates were… ‘simply a qualified guess given to satisfy public demand’ and according to this statement, were never meant to be considered scientific estimates, despite what they were called, the scientific group that issued them, and how they were used,” Crockford said.
“All this glosses over what I think is a critical point: none of these ‘global population estimates’ (from 2001 onward) came anywhere close to being estimates of the actual world population size of polar bears (regardless of how scientifically inaccurate they might have been) — rather, they were estimates of only the subpopulations that Arctic biologists have tried to count,” she added.
And, of course, adding polar bears to the endangered species list was a wonderful political way to limit oil drilling in Alaska, achieving President Obama's goal of causing energy prices to skyrocket.
Congrats! I stay away from bonds but sometimes dabble in preferred stocks. I bought Ford preferred for $7 a share when they announced they wouldn't declare bankruptcy like GM.
A year or so later the preferred was $54 a share and Ford sent me a deferred dividend check that was more than I had paid for the stock!
Personally, I think $5 is the current equilibrium price, for whatever reason. The problem you should consider is that USU will have a big announcement around Sep 5th which will definitely move the stock price.
USEC Inc. ("USEC" or the "Debtor") filed a voluntary petition for relief (the "Bankruptcy Filing") under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") case number 14-10475.
USEC Noteholders Voted to Approve Plan of Reorganization
More than 99% of votes cast by USEC convertible noteholders favor the plan
Both holders of preferred equity also voted in favor of the plan
Confirmation hearing scheduled for September 5.
From UK's Mail Online:
The speech by former US Vice-President Al Gore was apocalyptic. ‘The North Polar ice cap is falling off a cliff,’ he said. ‘It could be completely gone in summer in as little as seven years. Seven years from now.’
Those comments came in 2007 as Mr Gore accepted the Nobel Peace Prize for his campaigning on climate change.
But seven years after his warning, The Mail on Sunday can reveal that, far from vanishing, the Arctic ice cap has expanded for the second year in succession – with a surge, depending on how you measure it, of between 43 and 63 per cent since 2012.
The apparent recovery in Arctic ice looks like good news for polar bears.
If there is more ice at the end of the summer, they can hunt seals more easily. Yet even when the ice reached a low point in 2012, there was no scientific evidence that bear numbers were declining, with their estimated total of 20,000 to 25,000 thought to be higher than in the 1970s, when hunting was first banned.
In many Arctic regions, say scientists, they are in robust health and breeding successfully.
Computer model predictions of decline caused by ice melt have also failed to come true. In 2004, researchers claimed Hudson Bay bear numbers would fall from 900 to fewer than 700 by 2011. In fact, they have risen to over 1,000.
Of course, we've all learned it would be moronic to base economic policies on computer models!
Let me clarify that I don't plan on being long the stock on Sept 9th. Too hard to predict how it will react.
Eventually the Titanic had to sink, but while it was going down you could sit on deck and enjoy the nice music.
It wouldn't surprise me if the stock broke through support levels (currently around $5), but it wouldn't surprise me if we got another short squeeze either. Good news can have a disproportianate effect on a stock that has so many shorts betting on it going to zero. I'm tempted to buy some on the next dip just in case we get another squeeze.