A federal judge seems to understand the fundamentals of uranium enrichment economics better than USEC, which filed for bankruptcy last week (Nuclear Newsreel, March 5). According to this article from Bloomberg, “U.S. Bankruptcy Judge Christopher Sontchi said today that USEC has no financial projections and falling sales because of an oversupply of enriched uranium, raising the question of why it would bother to reorganize its balance sheet in bankruptcy.
“What’s the point?” Sontchi asked D.J. Baker, a lawyer for USEC, at a hearing in Wilmington, Delaware. A reorganization might only “keep the company on life support for the next six to 10 years,” Sontchi said.”
USEC still wants to build a new $3 Billion uranium enrichment plant (mostly with a $2 Billion taxpayer loan it hopes to receive from DOE) despite declaring bankruptcy and having virtually no assets. Areva, which actually did receive a $2 Billion loan offer from DOE, scrapped plans to build a similar plant in Idaho because of the current global oversupply of enriched uranium and the failure of the “nuclear renaissance” in the U.S.
Note: GreenWorld will not publish tomorrow, Tuesday, March 11, 2014. Join the Fukushima anniversary-related action nearest you! We’ll be back on Wednesday.
Comments are welcome! Say your piece above. Start a discussion. Don’t be shy; this blog is for you.
If you like GreenWorld, you can help us reach more people. Just use the icons below to “like” our posts and to share them on the various social networking sites you use. And if you don’t like GreenWorld, please let us know that too. Send an e-mail with your comments/complaints/compliments to email@example.com. Thank you!
Note: If you’d like to receive GreenWorld via e-mail daily, send your name and e-mail address to firstname.lastname@example.org and we’ll send you an invitation. Note that the invitation will come from a GreenWorld@wordpress.com address and not a nirs.org address, so watch for it.