10/30/2024 | News release | Distributed by Public on 10/30/2024 11:44
Seattle-based Ultra Safe Nuclear (USNC), developer of a high-temperature, gas-cooled microreactor design that has drawn interest from potential customers and research and development funding from the Department of Energy, announced yesterday that it has filed a petition for Chapter 11 bankruptcy to facilitate its sale to Standard Nuclear Inc. The filing, made in the U.S. Bankruptcy Court in Wilmington, Del., includes USNC and its subsidiaries, Ultra Safe Nuclear-Technologies, USNC-Power, and Global First Power.
As the sale process unfolds, USNC stated in a press release that it expects to "maintain full operational continuity" across its projects. In addition, the company has obtained debtor-in-possession financing to support its business operations and satisfy its obligations during the court-supervised process.
The agreement: According to an asset purchase agreement reached on October 28, Standard Nuclear is to serve as the stalking horse bidder for USNC's fuel-related assets and technology development contracts. Under the terms agreed, Standard Nuclear will acquire "substantially all," as stated by Bloomberg Law, of USNC's assets for $28 million in cash. This bid establishes a floor for the assets, subject to better offers.
Bloomberg Law also said that USNC "listed between $50 million and $100 million in estimated liabilities, and $10 million to $50 million in estimated assets, according to court papers."
Kirk Edwards, chair of USNC's board of directors, released the following statememt regarding the bankruptcy filing:
Ultra Safe Nuclear remains steadfast in its dedication to bringing safe, commercially competitive, clean, and reliable nuclear energy to global power and industrial markets. After carefully exploring all available options, we have decided that this court-supervised sale process offers the best path forward while ensuring continuity across our key technology initiatives. These initiatives include bringing our TRISO-based fuels to market, deploying MMRs [Micro Modular Reactors] as a carbon-free energy solution, and advancing essential technologies for the U.S. Department of Defense, NASA, and the U.K. Department of Energy Security and Net Zero. We are pleased to begin this process with an agreed-upon offer from an entity aligned with our strategic objectives and experienced in the sector. We appreciate our stakeholders' continued loyalty as we work towards a stronger future for USNC.
Past headlines: USNC has featured in Nuclear Newswire coverage over the last four years for its TRISO fuel development work, microreactor siting plans, and space aspirations.
Complete transaction: USNC has requested court approval to complete the transaction this December. The company intends to continue a sale process for its remaining assets and effectuate any resulting sale transactions pursuant to section 363 of the Bankruptcy Code.
USNC expects to receive court approval to continue its operations as normal during the court-supervised process, including payment of employee wages. It has also filed customary motions seeking court approval to meet all post-petition obligations to vendors.
Court filings and additional information related to the court proceedings are available on a website administered by Stretto, USNC's claims agent.