Thursday, November 21, 2013 11:53:26 PM
USEC Inc Form 8-K for USEC INC 21-Nov-2013
Entry into a Material Definitive Agreement
Board:
http://investorshub.advfn.com/USEC-Inc-USU-9220/
$USEC
Item 1.01 Entry into a Material Definitive Agreement.
On November 20, 2013, USEC Inc. ("USEC" or the "Company") and its subsidiary American Centrifuge Demonstration, LLC ("ACD") entered into Amendment No. 010 (the "Amendment") to the cooperative agreement dated June 12, 2012 between the U.S. Department of Energy ("DOE") and USEC and ACD for the research, development and demonstration ("RD&D") program for the American Centrifuge project. The Amendment amends the cooperative agreement to provide for additional government obligated funds of $15.7 million, bringing total government obligated funding to $256.9 million. The Amendment also extends the current funding period and end date of the program until January 15, 2014, enabling continued work to be performed under the cooperative agreement through January 15, 2014. The other terms and conditions, including the milestones and performance indicators under the RD&D program were not changed by the Amendment. USEC continues to expect to meet the remaining three RD&D program technical milestones during December 2013.
The cooperative agreement provides funding for a cost-share RD&D program to demonstrate the American Centrifuge technology through the construction and operation of a commercial demonstration cascade of 120 centrifuge machines and sustain the domestic U.S. centrifuge technical and industrial base for national security purposes and potential commercialization of the American Centrifuge technology. The cooperative agreement, as amended by the Amendment, provides for 80% DOE and 20% USEC cost sharing for work performed during the period June 1, 2012 through January 15, 2014. DOE's contribution has been incrementally funded.
As discussed in USEC's quarterly report on Form 10-Q filed with the Securities and Exchange Commission on November 5, 2013, USEC is evaluating and pursuing the feasibility of alternatives and the actions necessary to proceed with the commercial deployment of the American Centrifuge technology, including the availability of additional government support and has initiated discussions with DOE regarding the project's need for this support. However, USEC has no assurance that it will be successful in achieving any of these measures or the timing thereof. In light of USEC's liquidity, it does not have the ability to continue to fund the American Centrifuge project at its current levels beyond the end of the RD&D program without additional government support and even with this support USEC's ability to provide funding in 2014 will be limited. Therefore, USEC continues to evaluate its options concerning the American Centrifuge project, including its ability to continue the project prior to or upon completion of the RD&D program, further demobilization of or delays in the commercial deployment of the project, and termination of the project, and could make a decision to demobilize or terminate the project in the near term. Any such actions may have a material adverse impact on USEC's ability to deploy the American Centrifuge technology, on its liquidity and on the long-term viability of its enrichment business.
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Entry into a Material Definitive Agreement
Board:
http://investorshub.advfn.com/USEC-Inc-USU-9220/
$USEC
Item 1.01 Entry into a Material Definitive Agreement.
On November 20, 2013, USEC Inc. ("USEC" or the "Company") and its subsidiary American Centrifuge Demonstration, LLC ("ACD") entered into Amendment No. 010 (the "Amendment") to the cooperative agreement dated June 12, 2012 between the U.S. Department of Energy ("DOE") and USEC and ACD for the research, development and demonstration ("RD&D") program for the American Centrifuge project. The Amendment amends the cooperative agreement to provide for additional government obligated funds of $15.7 million, bringing total government obligated funding to $256.9 million. The Amendment also extends the current funding period and end date of the program until January 15, 2014, enabling continued work to be performed under the cooperative agreement through January 15, 2014. The other terms and conditions, including the milestones and performance indicators under the RD&D program were not changed by the Amendment. USEC continues to expect to meet the remaining three RD&D program technical milestones during December 2013.
The cooperative agreement provides funding for a cost-share RD&D program to demonstrate the American Centrifuge technology through the construction and operation of a commercial demonstration cascade of 120 centrifuge machines and sustain the domestic U.S. centrifuge technical and industrial base for national security purposes and potential commercialization of the American Centrifuge technology. The cooperative agreement, as amended by the Amendment, provides for 80% DOE and 20% USEC cost sharing for work performed during the period June 1, 2012 through January 15, 2014. DOE's contribution has been incrementally funded.
As discussed in USEC's quarterly report on Form 10-Q filed with the Securities and Exchange Commission on November 5, 2013, USEC is evaluating and pursuing the feasibility of alternatives and the actions necessary to proceed with the commercial deployment of the American Centrifuge technology, including the availability of additional government support and has initiated discussions with DOE regarding the project's need for this support. However, USEC has no assurance that it will be successful in achieving any of these measures or the timing thereof. In light of USEC's liquidity, it does not have the ability to continue to fund the American Centrifuge project at its current levels beyond the end of the RD&D program without additional government support and even with this support USEC's ability to provide funding in 2014 will be limited. Therefore, USEC continues to evaluate its options concerning the American Centrifuge project, including its ability to continue the project prior to or upon completion of the RD&D program, further demobilization of or delays in the commercial deployment of the project, and termination of the project, and could make a decision to demobilize or terminate the project in the near term. Any such actions may have a material adverse impact on USEC's ability to deploy the American Centrifuge technology, on its liquidity and on the long-term viability of its enrichment business.
cited from friends post - credit and thanks!
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