EX-99.1 2 ex99-1.htm EXHIBIT 99.1 EX99-1


 
 
 
EXHIBIT 99.1
 
UNITED STATES BANKRUPTCY COURT
 
FOR THE DISTRICT OF DELAWARE
 
 
 
 
 
In re USEC Inc.
 
 
 
 
 
Case No.
14-10475 (CSS)
 
 
Reporting Period:
 
31-Aug-14
 
 
 
 
 
 
 
Federal Tax I.D. #
 
52-2107911
 
 
 
 
 
 
CORPORATE MONTHLY OPERATING REPORT
 
 
 
 
 
 
File with the Court and submit a copy to the United States Trustee within 30 days after the end of
 
 
the month and submit a copy of the report to any official committee appointed in the case.
 
 
 
 
 
 
 
REQUIRED DOCUMENTS
Form No.
Document Attached
Explanation Attached
 
Schedule of Cash Receipts and Disbursements
MOR-1a
x
 
 
Bank Account Information
MOR-1b
x
 
 
     Copies of bank statements (See Notes to the MOR)
 
 
x
 
     Cash disbursements journals (See Notes to the MOR)
 
 
x
 
Statement of Operations (Income Statement)
MOR-2
x
 
 
Balance Sheet
MOR-3
x
 
 
Status of Post-petition Taxes
MOR-4
x
 
 
     Copies of IRS Form 6123 or payment receipt (See Notes to the MOR)
 
 
x
 
     Copies of tax returns filed during reporting period (See Notes to the MOR)
 
 
x
 
Summary of Unpaid Post-petition Debts
MOR-4
x
 
 
     Listing of Aged Accounts Payable (See Notes to the MOR)
 
 
x
 
Accounts Receivable Reconciliation and Aging
MOR-5
x
 
 
Payments to Professionals
MOR-6
x
 
 
Post Petition Secured Notes Adequate Protection Payments
MOR-6
x
 
 
Debtor Questionnaire
MOR-7
x
 
 
 
 
 
 
 
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents
 
 
are true and correct to the best of my knowledge and belief.
 
 
 
 
 
 
 
 
 
/s/ John R. Castellano
 
September 29, 2014
 
Signature of Authorized Individual*
 
Date
 
 
 
 
 
 
 
John R. Castellano
 
 
 
 
Printed Name of Authorized Individual
 
 
 
 
 
 
 
 
 
Chief Restructuring Officer
 
 
 
 
Title
 
 
 
 
 
 
 
 
 
*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if
 
 
debtor is a partnership; a manager or member if debtor is a limited liability company.
 




 
 
 
MOR NOTES
 
 
 
 
In re USEC Inc.
 
 
 
 
 
Case No.
14-10475 (CSS)
 
 
Reporting Period:
31-Aug-14
 
 
 
 
 
 
Federal Tax I.D. #
52-2107911
 
 
 
 
Notes to the Monthly Operating Report
 
 
 
 
GENERAL:
 
 
 
The report includes activity from the following Debtor:
 
 
 
 
 
 
 
Debtor
Case Number
 
 
USEC Inc.
14-10475 (CSS)
 
 
 
 
 
 
Notes to MOR-1a:
 
 
 
 
 
 
 
Cash disbursements shown are based on a book basis which consider a disbursement made when a check is
issued, as opposed to when a check is presented for payment.
 
 
 
 
 
 
Amounts do not include interest on the DIP Loan, which is accrued to the outstanding DIP Loan balance.
 
 
 
 
Notes to MOR-1b:
 
 
 
 
 
 
 
All amounts listed represent the bank balances as of the end of the month.
 
 
 
 
 
Copies of the bank statements and cash disbursement journals were not included with the MOR but are available
upon request.
 
 
 
 
 
 
 
Notes to MOR-2/3:
 
 
 
 
 
 
 
The unaudited condensed financial statements as of and for the one month ended August 31, 2014 have been
prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Certain
information and notes normally included in financial statements prepared in accordance with GAAP have been
omitted. The unaudited condensed financial statements reflect all adjustments which are, in the opinion of management,
necessary for a fair statement of the financial results for the interim period.
 
 
 
 
 
The Income Statement reflects revenue and expenses that directly correspond to the debtor legal entity, USEC Inc.,
and does not include non-debtor affiliates and subsidiaries.
 
 
 
 
 
 
The Balance Sheet reflect assets, liabilities, and stockholders equity that directly correspond to the debtor legal entity,
USEC Inc., and does not include non-debtor affiliates and subsidiaries.
 
 
 
 
 
 
The ending cash amount shown on the Balance Sheet ($12.0 million) varies from the ending cash amount shown on
MOR-1b ($8.2 million) due to a delay in the bank crediting a $3.8 million insurance receipt received the last day of
the month. This timing variance will show as a receipt on the September Monthly Operating Report.




 
 
 
MOR NOTES
 
 
 
 
In re USEC Inc.
 
 
 
 
 
Case No.
14-10475 (CSS)
 
 
Reporting Period:
31-Aug-14
 
 
 
 
 
 
Federal Tax I.D. #
52-2107911
 
 
 
 
Notes to the Monthly Operating Report
 
 
 
 
Notes to MOR-4:
 
 
 
 
 
 
 
USEC Inc. received an order which allows the payment of pre-petition taxes. The tax walkforward will reflect
both pre-petition and post-petition taxes.
 
 
 
 
USEC Inc. does not expect to be required to make any federal or state income tax payments.
 
 
 
 
USEC Inc. files tax returns and makes tax payments periodically. The tax returns and related payments will be made
available upon request.
 
 
 
 
 
 
 
USEC Inc. is current on all post petition payments other than disputes that arise in the ordinary course of business
and amounts expected to be but not yet authorized for payment by the Bankruptcy Court.
 
 
 
 
Due to the volume of activity the detailed listing of aged post petition payables is not included.
 
 
 
 
The post petition accounts payable reported represent open and outstanding trade vendor invoices that have been
entered into the Debtor's accounts payable system and does not include accruals for invoices not yet received or approved.
 
 
 
 
Notes to MOR-5:
 
 
 
 
 
 
 
Accounts receivable represents amounts due from Oak Ridge National Laboratory for the
American Centrifuge Demonstration and Operation (ACTDO) agreement, and ACP-related IP documentation
provided to DOE under fixed-price work authorizations.
 
 
 
 
Notes to MOR-6:
 
 
 
 
 
 
 
Interest expense on the Debtor-in-Possession (DIP) Facility and Secured Intercompany Loan are accrued
to the loan balance and do not result in a cash payment.
 
 
 
 
 
 
Notes to MOR-7:
 
 
 
 
 
 
 
USEC Inc. conducted a sale of certain assets by auction on July 23, 2014 (as mentioned in the previous Monthly
Operating Report). As some buyers did not provide their payments until August, ownership of some of these
sold assets did not change hands until August.
 
 
 
 
USEC Inc. has received orders that allow payment of certain pre-petition liabilities such as employee benefits
and employee expense reimbursement.
 
 
 
 
 
 
The DIP Lender is the Debtor's non-debtor affiliate, United States Enrichment Corporation subsidiary.
Funding was provided under the DIP during the month (amount shown on Schedule MOR-1a).
 
In August 2014, the Debtor made property tax payments to the City of Oak Ridge and the Sheriff of Mineral County
based on property reported on assessment dates in the pre-petition period.




 
 
 
MOR-1a

 
 
 
 
In re USEC Inc.
 
 
 
 
 
Case No.
14-10475 (CSS)

 
 
Reporting Period:
31-Aug-14

 
 
 
 
 
 
Federal Tax I.D. #
52-2107911

 
 
 
 
Schedule of Cash Receipts and Disbursements
(000's)
 
 
 
TIME PERIOD:
 
 
 
8/1/2014 - 8/31/2014
 
 
 
 
 
 
 
 
Debtor
Activity
Amounts
USEC Inc.
Beginning Total Cash (Bank Balance)
$3,654
 
 
Less: Outstanding Checks & Bank Adjustments
(1,298
)
 
Beginning Total Cash (Book Balance)
$2,356
 
 
 
 
 
Receipts
 
 
 
 
DOE RD&D Reimbursement
—

 
 
ORNL ACTDO Receipts
6,742

 
 
Asset Proceeds
4,513

 
 
Other Receipts
126

 
 
Total Operating Receipts
11,381

 
 
 
 
 
Disbursements (book basis)
 
 
 
Headquarters Payroll & Benefits
(2,060
)
 
 
Headquarters Overhead
(767
)
 
 
Headquarters Outside Services
(159
)
 
 
ACP Payroll & Benefits
(2,912
)
 
 
ACP Machine Technology & Operations
(1,494
)
 
 
ACP Manufacturing, EPC and PETE
(2,025
)
 
 
Total Operating Disbursements
(9,417
)
 
 
 
 
 
Non-Operating Items:
 
 
 
Professional Fees
(1,644
)
 
 
Interest
—

 
 
Other (Utility Deposit)
—

 
 
Total Non-Operating Disbursements
(1,644
)
 
 
 
 
 
 
Total Disbursements
(11,061
)
 
 
 
 
 
Funding Activities:
 
 
 
Cash funding provided by draws on DIP:
16,000

 
 
Cash payments on DIP
(11,380
)
 
 
Cash payments on Pre-Petition Secured Loan
—

 
 
Total Funding Activities
4,620

 
 
 
 
 
Total Change in Cash
4,940

 
 
 
 
 
Ending Cash (Book Balance)
7,296

 
 
Plus: Bank Adjustment, Timing & Bank Interest
—

 
 
Plus: Outstanding Checks
702

 
Ending Cash (Bank Balance)
7,998





 
 
 
MOR-1b
 
 
 
 
 
 
 
 
In re USEC Inc.
 
 
 
 
Case No.
 
14-10475 (CSS)
 
Reporting Period:
 
31-Aug-14
 
 
 
 
 
Federal Tax I.D. #
 
52-2107911
 
 
 
 
Bank Account Information
(000's)
 
 
 
 
Legal Entity
Bank
Bank Account
Bank Balance
USEC Inc.
JP Morgan Chase
XX6272
$7,998
USEC Inc.
JP Morgan Chase
XX5349
$0
USEC Inc.
JP Morgan Chase
XX4574
$0
USEC Inc.
JP Morgan Chase
XX6241
$175
USEC Inc.
JP Morgan Chase
XX7309
$0
USEC Inc.
Merrill Lynch
XX3365
$0
USEC Inc.
JP Morgan Chase
XX2733
$50
 
 
 
 
Total USEC Bank Account Balances, per statements
 
$8,223





 
 
 
 
MOR-2
In re USEC Inc.
 
 
 
 
 
 
Case No.
14-10475 (CSS)
 
 
Reporting Period:
 
31-Aug-14
 
 
Federal Tax I.D. #
 
52-2107911
 
 
 
 
 
Statement of Operations (Income Statement)
(000's)
The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes
revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.
 
 
 
 
 
 
USEC Inc.
 
 
 
 
14-10475 (CSS)
 
 
 
Revenue
 
 
 
 
     Separative Work Units
—

 
 
 
     Uranium
—

 
 
 
     U. S. Government Contracts and Other
6,816

 
 
 
          Revenue
6,816

 
 
 
 
 
 
 
 
Cost of Sales
 
 
 
 
     Separative Work Units
 
 
 
 
          Production Costs
—

 
 
 
          Purchase Costs
—

 
 
 
          Change in Inventory
—

 
 
 
          Non Production Pension Expense
—

 
 
 
 
—

 
 
 
     ARO Accretion Expense
—

 
 
 
     Uranium
—

 
 
 
     U. S. Government Contracts and Other
6,479

 
 
 
          Cost of Sales
6,479

 
 
 
 
 
 
 
 
Gross Profit
 
 
 
 
     Separative Work Units
—

 
 
 
     Uranium
—

 
 
 
     U. S. Government Contracts and Other
337

 
 
 
          Gross Profit
337

 
 
 
 
 
 
 
 
Gross Margin %
—

 
 
 
 
 
 
 
 
Special Charges
—

 
 
 
Advanced Technology Costs
(2,536
)
 
 
 
Selling, General and Administrative
3,693

 
 
 
Other (Income) Expense, Net
(4,452
)
 
 
 
Intercompany Cost Recovery
(6,966
)
 
 
 
Operating Income (Loss)
10,598

 
 
 
 
 
 
 
 
Interest Expense
2,266

 
 
 
Preferred Stock Financing Costs
—

 
 
 
Interest (Income)
(7
)
 
 
 
Reorganization Costs
1,928

 
 
 
Income (Loss) from Continuing Ops before Taxes
6,411

 
 
 
Provision (benefit) for Income Taxes
—

 
 
 
Net Income (Loss)
6,411

 
 
 
Equity in earnings (Loss) of non-filing entities
(12,180
)
 
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO USEC INC.
(5,769
)
 
 
 




 
 
 
 
MOR-3

In re USEC Inc.
 
 
 
 
 
 
 
Case No.
14-10475 (CSS)

 
 
 
Reporting Period:
31-Aug-14

 
 
 
 
 
 
 
 
Federal Tax I.D. #
52-2107911

 
 
 
 
 
Balance Sheet
(000's)
The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from post-petition obligations.
 
 
 
 
 
 
USEC Inc.
 
 
 
 
14-10475 (CSS)
 
 
 
ASSETS
 
 
LIABILITIES & STOCKHOLDERS' EQUITY
 
 
 
 
 
 
CURRENT ASSETS
 
 
CURRENT LIABILITIES
 
Cash and cash equivalents
12,000

 
Short-term debt (DIP)
19,000

Short-term investments
—

 
Accounts payable and accrued liabilities
21,500

Accounts receivable
 
 
          Total Current Liabilities
40,500

     Customers
—

 
 
 
     ORNL/DOE
6,800

 
OTHER LIABILITIES
 
          Total Receivables
6,800

 
Postretirement health and life benefit obligations
—

Inventories
 
 
Pension benefit liabilities
25,600

     Separative work units
—

 
Deferred revenue and advances
—

     Uranium
—

 
Other liabilities
24,400

     Uranium provided by customers
—

 
          Total Other Liabilities
50,000

     Materials & Supplies
200

 
 
 
          Total Inventories
200

 
LIABILITIES SUBJECT TO COMPROMISE
994,500

 
 
 
 
 
Deferred Costs Related to Deferred Revenue
—

 
TOTAL LIABILITIES
1,085,000

Receivable from non-filing entity
—

 
 
 
Other
11,300

 
STOCKHOLDERS' EQUITY
 
          Total Current Assets
30,300

 
Common stock, par value $.10 per share
500

 
 
 
Excess of capital over par value
149,500

PROPERTY, PLANT AND EQUIPMENT
 
Treasury stock
(34,400
)
Construction work in progress
—

 
Accumulated other comprehensive income (Loss)
(68,300
)
Leasehold improvements
1,700

 
Equity in Subsidiary
469,700

Machinery & equipment
8,400

 
Retained earnings
(1,070,500
)
 
10,100

 
          Total Stockholders' Equity
(553,500
)
Less: Accumulated depreciation & amortization
(8,600
)
 
 
 
   Property, Plant and Equipment, Net
1,500

 
TOTAL LIABILITIES &
 
 
 
 
STOCKHOLDERS' EQUITY
531,500

OTHER ASSETS
 
 
 
 
Investment in non-filing entity
470,300

 
 
 
Deposit for surety bonds
29,400

 
 
 
          Total Other Assets
499,700

 
 
 
 
 
 
 
 
TOTAL ASSETS
531,500

 
 
 
 
 
 
 
 
 
 
 
 
 




 
 
 
 
 
 
MOR-4

 
 
 
 
 
 
 
In re USEC Inc.
 
 
 
 
 
 
 
 
 
 
 
Case No.

14-10475 (CSS)

 
 
 
 
Reporting Period:
 
31-Aug-14

 
 
 
 
 
 
 
 
 
 
 
Federal Tax I.D. #
 
52-2107911

 
 
 
 
 
 
 
Status of Post-petition Taxes
 
 
 
(000's)
 
 
 
 
 
 
 
 
 
 
USEC Inc.
Beginning
Tax
Liability
Amount
Withheld or
Accrued
Amount
Paid
Ending
Tax
Liability
Federal Taxes
 
 
 
 
 
 
Withholding
 
 
$
(562
)
$
1,294

$
(732
)
$
—

FICA-Employee
 
 
(80
)
302

(222
)
—

FICA-Employer
 
 
597

380

(214
)
763

Unemployment
 
 
6

—

—

6

Income
 
 
—

—

—

—

Other:
 
 
—

—

—

—

Total Federal
 
 
$
(39
)
$
1,976

$
(1,168
)
$
769

 
 
 
 
 
 
 
State & Local
 
 
 
 
 
 
Withholding
 
 
$
(109
)
$
271

$
(152
)
$
10

Unemployment
 
 
—

—

—

—

Sales
 
 
(1
)
18

(18
)
(1
)
Excise
 
 
—

—

—

—

Real Property
 
 
—

—

—

—

Personal Property
 
 
—

—

—

—

Other: Income
 
 
(19
)
—

—

(19
)
Other: Gross Receipts
 
 
22

2

(3
)
21

Other: Franchise
 
 
33

15

(36
)
12

Total State and Local
 
 
$
(74
)
$
306

$
(209
)
$
23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL Taxes
 
 
$
(113
)
$
2,282

$
(1,377
)
$
792

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of Unpaid Post-petition Debts (See Notes to the MOR)
 
 
 
(000's)
 
 
 
 
 
 
 
 
 
 
 
Days Past Due
 
Current
1-30
31-60
61-90
>91
Total
USEC Inc.
$
1,215

$
51

$
17

$
1

$
—

$
1,284





 
 
 
 
MOR-5

 
 
 
 
 
 
 
 
 
 
 
 
 
In re USEC Inc.
 
 
 
 
 
 
 
Case No.
14-10475 (CSS)
 
 
Reporting Period:
31-Aug-14
 
 
 
 
 
 
 
 
 
Federal Tax I.D. #
52-2107911
 
 
 
 
 
 
Accounts Receivable Reconciliation and Aging (See Notes to the MOR)
(000's)
 
 
 
 
 
 
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
 
Accounts Receivable Reconciliation
 
 
Amount
 
 
Total Accounts Receivable (Net) at the beginning of the reporting period
 
$6,848
 
 
+ Amounts billed during the period
 
 
6,816

 
 
- Amounts collected during the period
 
 
(6,867
)
 
 
Total Accounts Receivable (Net) at the end of the reporting period
 
$6,797
 
 
 
 
 
 
 
 
Accounts Receivable Aging
 
 
Amount
 
 
Current
 
 
$6,797
 
 
0 - 30 days old
 
 
$0
 
 
31 - 60 days old
 
 
$0
 
 
61 - 90 days old
 
 
$0
 
 
91+ days old
 
 
$0
 
 
Total Accounts Receivable
 
 
$6,797
 
 
Contractual Allowance / Uncollectible
 
 
$0
 
 
Accounts Receivable (Net)
 
 
$6,797
 





 
 
 
 
 
 
MOR-6
 
 
 
 
 
 
 
In re USEC Inc.
 
 
 
 
 
 
 
 
Case No.
14-10475 (CSS)
 
 
 
Reporting Period:
31-Aug-14
 
 
 
 
 
 
 
 
 
 
Federal Tax I.D. #
52-2107911
 
 
 
 
 
 
 
Payments to Professionals
 
 
 
 
 
 
 
 
 
Professionals
 
 
 
 
 
 
Name
Amount Paid During Month
Total Paid to Date
 
 
 
 
AKIN GUMP STRAUSS HAUER AND FELD LLP
$
204,283

$
663,271

 
 
 
 
HOULIHAN LOKEY CAPITAL INC
150,109

751,241

 
 
 
 
LOGAN AND CO INC
24,898

221,779

 
 
 
 
BABCOCK & WILCOX (Reimbursement for EA Advisors & Baker Botts)
217,440

602,239

 
 
 
 
TOSHIBA AMERICA NUCLEAR ENERGY CORP (Reimbursement for GLC & Morrison Foerster)
—

325,851

 
 
 
 
US TRUSTEE
—

40,400

 
 
 
 
AP SERVICES LLP
625,787

1,857,670

 
 
 
 
LATHAM & WATKINS LLP
—

1,027,998

 
 
 
 
RICHARDS LAYTON & FINGER
29,560

204,925

 
 
 
 
YOUNG CONAWAY STARGATT AND TAYLOR LLP
135,035

486,848

 
 
 
 
LAZARD FRERES AND CO LLC
160,000

521,526

 
 
 
 
PRICEWATERHOUSECOOPERS LLP
81,804

334,885

 
 
 
 
KPMG LLP
14,726

59,286

 
 
 
 
MORRISON AND FOERSTER LLP
—

69,175

 
 
 
 
MORRIS NICHOLS ARSHT AND TUNNELL LLP
—

13,824

 
 
 
 
GLC ADVISORS AND CO LLC
—

304,971

 
 
 
 
 
 
 
 
 
 
 
Total Payments to Professionals
$
1,643,642

$
7,485,891

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Post Petition Secured Notes Adequate Protection Payments
 
 
 
 
 
 
 
 
 
Name of Creditor
Amount Paid During Month
 
 
 
 
 
United States Enrichment Corporation - DIP1
$
215,827

 
 
 
 
 
United States Enrichment Corporation - Secured Intercompany1
500,216

 
 
 
 
 
 
 
 
 
 
 
 
Total Payments
$
716,043

 
 
 
 
 
(1) Interest on the DIP and Secured Intercompany Loan is charged to the loan and is not a cash payment
 





 
 
 
MOR-7
 
 
 
 
In re USEC Inc.
 
 
 
 
Case No.
14-10475 (CSS)
 
 
Reporting Period:
31-Aug-14
 
 
 
 
 
 
Federal Tax I.D. #
52-2107911
 
 
 
 
Debtor Questionnaire
 
 
 
 
 
Must be completed each month. If the answer to any of the questions is “Yes”, provide a detailed explanation of each item. Attach additional sheets if necessary.
Yes
No
1
Have any assets been sold or transferred outside the normal course of business this reporting period?
X
 
2
Have any funds been disbursed from any account other than a debtor in possession account this reporting period?
 
X
3
Is the Debtor delinquent in the timely filing of any post-petition tax returns?
 
X
4
Are workers compensation, general liability or other necessary insurance coverages expired or cancelled, or has the debtor received notice of expiration or cancellation of such policies?
 
X
5
Is the Debtor delinquent in paying any insurance premium payment?
 
X
6
Have any payments been made on pre-petition liabilities this reporting period?
X
 
7
Are any post petition receivables (accounts, notes or loans) due from related parties?
 
X
8
Are any post petition payroll taxes past due?
 
X
9
Are any post petition State or Federal income taxes past due?
 
X
10
Are any post petition real estate taxes past due?
 
X
11
Are any other post petition taxes past due?
 
X
12
Have any pre-petition taxes been paid during this reporting period?
X
 
13
Are any amounts owed to post petition creditors delinquent?
 
X
14
Are any wage payments past due?
 
X
15
Have any post petition loans been been received by the Debtor from any party?
X
 
16
Is the Debtor delinquent in paying any U.S. Trustee fees?
 
X
17
Is the Debtor delinquent with any court ordered payments to attorneys or other professionals?
 
X
18
Have the owners or shareholders received any compensation outside of the normal course of business?
 
X