A uranium-enrichment company named USEC Inc. that is planning on filing for Chapter 11 bankruptcy is also building the American Centrifuge plant in Ohio. The plant is intended to replace another out-of-state facility.
As is the case with so many of business bankruptcy filings, this one is particularly complex. USEC stated that the Chapter 11 filing will not affect its operations. The restructuring will involve assigning of new equity to bondholders. It will also involve issuing of stock to equity holders that will assume $40 million in debt.
Chapter 11 bankruptcy was put in place in part to allow struggling businesses to have a fresh start. Both big and small companies can be so saddled with debt that it remains difficult to remain in business. It can also mean that both the personal and business assets of the company could be lost in the process.
When such happenings occur, employees may lose their jobs, creditors may never be fully paid back their debts, and customers may never receive the goods or services that they ordered and were counting upon. No one is served when the owners of a business are forced to just walk away.
Chapter 11 bankruptcy may not be the only option available, however. Businesses facing mounting debt may wish to speak to an experienced bankruptcy attorney who can provide them with any number of debt relief solutions. Such solutions may allow for the company to continue doing business. It may also help minimize loss and, in some circumstances, allow a company to wind down its business in a more positive fashion.
Bloomberg News, "USEC to File for Chapter 11 as Part of Debt-Restructuring," Sonja Elmquist, Dec. 16, 2013