Maryland-based enriched uranium producer, United States Enrichment Corporation, is planning to build an enrichment plant in Ohio, but first they have to contend with more than $500 million worth of debt. To manage all of this debt, USEC has filed for Chapter 11 bankruptcy with the hopes of restructuring the debt. Chapter 11 bankruptcy is just one of many debt relief options that businesses and individuals alike can take advantage of to get their finances under control.
USEC plans to restructure their $530 million debt in bonds that were set to mature later this year, with a new plan that would create instead $200 million in debt with bonds maturing after five years. Spokespeople for the company maintain that the bankruptcy will not affect their ongoing research and development program, nor will it interfere with the plans for building a plant in Piketon, Ohio. The president and CEO of the company also stated that the bankruptcy will give the company greater certainty in its ongoing business objectives.
This story is a great example of the purpose and utility of bankruptcy: debt relief and debt management. Society may try to paint bankruptcy as a business taboo, a mark of failure, but the fact of the matter is that filing bankruptcy is a tool to cope with debt while still maintaining some control over finances and assets. Different types of bankruptcy filings are available that can assist with individual or business needs.
Chapter 7 bankruptcy is the most common form of debt relief. It allows the filer to discharge some debts completely, while also stopping creditor harassment. It also allows some individuals to keep their assets, including homes, vehicles and personal property. Chapter 13 bankruptcy is primarily used when Chapter 7 bankruptcy has been filed in the last eight years or when a consumer has too many assets, and it provides the opportunity to reduce debts and eliminate some mortgage deficiencies. Debt relief options are out there, just waiting for people to make use of them.
Source: The Columbus Dispatch, “USEC, which wants to build Ohio uranium-enrichment plant, declares bankruptcy,” Jessica Wehrman, March 6, 2014