PDT Staff Writer
USEC has been given until June 15 by its creditors to ink a deal with the U.S. Department of Energy (DOE) to secure RD&D (Research Development and Demonstration) program funding for the rest of 2012.
USEC is working with DOE and members of Congress to secure funding for an RD&D program at the Piketon facility for 2013.
The RD&D program would be a cost-sharing measure between the federal government and USEC. The government’s contribution would be $300 million.
DOE is seeking Congressional approval for the funding.
“We were able to arrive at an agreement to extend our credit facility, so we could continue working with the Department of Energy on getting administrative solution to funding for this year, USEC spokesman Paul Jacobson said. “This will allow us to continue spending on the American Centrifuge up to $6 million through June 15. We have through June 15 to continue at the current rate of work.
“The fact that USEC’s creditors were comfortable that we were making good progress on administrative funding is reflected in their decision to give us the extension.”
He said it would have been a fair conclusion the creditors would not have granted an extension if they did not see progress.
“This extension is an exceptionally strong sign we are working toward a successful conclusion,” Jacobson said.
He said a credit facility is a line of credit, similar to a charge account, that is typically used as short-term borrowing to smooth out cash flow.
“If there is no funding in place from the government for the research program by the end of May, the credit facility essentially requires us to significantly curtail our spending on the project,” Jacobson said when they received the credit.
He said USEC is working with its creditors to extend its credit to fund the RD&D until a deal can be worked out with DOE.
Officials with USEC are still awaiting a decision from DOE about its pending $2 billion loan guarantee application. If awarded, the funds would be used in the construction and operation of the American Centrifuge Plant (ACP) in Piketon.
Wayne Allen may be reached at 740-353-3101, ext. 208, or email@example.com.