Ultra Safe Nuclear Corporation (“USNC”) Files Chapter 11 Petition to Facilitate Sale
Process Will Allow USNC to Continue Operations Under New Ownership
OAK RIDGE, TN – October 29, 2024 - Ultra Safe Nuclear Corporation (“USNC”), a global leader and vertical integrator of nuclear technologies and services, on Earth and in Space, today announced that it is seeking to run a sale process pursuant to Section 363 of Chapter 11 of the U.S. Bankruptcy Code. The filing will consist of USNC and its subsidiaries, Ultra Safe Nuclear-Technologies, USNC-Power, and Global First Power Ltd. During these proceedings, USNC will maintain full operational continuity across its projects, including the deployment of its Micro Modular Reactor (MMR®) systems in the U.S., Canada, largescale production of TRISO-based and Fully Ceramic Microencapsulated (FCM®) fuels, and the fulfillment of space and defense projects for multiple U.S. government agencies.
USNC has obtained debtor-in-possession (“DIP”) financing that, following court approval, adequately supports its business operations and satisfies its obligations during the court-supervised process. In addition, USNC announced it entered into an asset purchase agreement (“APA”) with Standard Nuclear, Inc. to serve as the Stalking Horse Bidder for USNC’s fuel-related assets and technology development contracts. Under the terms of the APA, Standard Nuclear will acquire the assets for $28 million in cash. USNC is conducting a sale process for all its assets through a public auction and will effectuate any resulting sale transactions pursuant to Section 363 of the U.S. Bankruptcy Code. USNC has asked the Court for approval to complete the transaction in December.
“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”, stated Kirk Edwards, Chairman of USNC’s Board of Directors. “These initiatives include bringing our TRISO-based fuels to market, deploying MMRs as a carbon-free energy solution, and advancing essential technologies for the U.S. Department of Defense, NASA, and the UK 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.”
The Company has filed customary motions seeking court approval to continue its operations as normal during the court-supervised process, including the payment of employee wages. The Company expects to receive court approval for these requests. USNC has also filed customary motions seeking court approval to meet all post-petition obligations to vendors.
Court filings and additional information related to the proceedings are available on a website administered by the Company’s claims agent, Stretto.
USNC is represented by Young Conaway Stargatt & Taylor, LLP as restructuring counsel and Ankura Consulting as financial advisor. Intrepid Investment Bankers LLC is serving as investment banker.