USEC Enters into Standstill Agreement with Toshiba and B&W

USEC Inc. USU announced today that it has entered into a standstill agreement with its strategic investors Toshiba Corporation (Toshiba), acting through its U.S. subsidiary Toshiba America Nuclear Energy Corporation, and Babcock & Wilcox Investment Company (B&W) to provide a limited additional period of time to obtain a conditional commitment from the U.S. Department of Energy (DOE) for a $2 billion loan guarantee to build the American Centrifuge uranium enrichment plant in Piketon, Ohio. During this limited period, USEC expects to work with DOE to complete the loan guarantee review process and obtain a decision from DOE on the conditional commitment by the end of July 2011. “USEC has been working diligently with DOE over the past several months to conclude the review process for our loan guarantee application, and we appreciate the attention they are giving to the matter. We are working hard toward a successful conclusion, but we have not been able to conclude the conditional commitment process before June 30, which was the outside date for the next stage of the Toshiba and B&W investment. This standstill agreement provides the limited additional time needed for DOE to complete its review and reach a decision during July,” said John K. Welch, USEC president and chief executive officer.