EX-99.1 2 exhibit99-1.htm EXHIBIT 99.1 Exhibit99.1


 
 
 
EXHIBIT 99.1
 
UNITED STATES BANKRUPTCY COURT
 
FOR THE DISTRICT OF DELAWARE
 
 
 
 
 
In re USEC Inc.
 
 
 
 
 
Case No.
14-10475 (CSS)
 
 
Reporting Period:
 
30-Apr-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
 
May 30, 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:
30-Apr-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:
 
 
 
 
 
 
 
Cash balance shown on the balance sheet ($14.7 million) differs from the total book cash balance shown on MOR-1a
($13.6 million) due to payroll funding in transit.
 
 
 
 
 
 
 
The unaudited condensed financial statements as of and for the one month ended April 30, 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.
 
 




 
 
 
MOR NOTES
 
 
 
 
In re USEC Inc.
 
 
 
 
 
Case No.
14-10475 (CSS)
 
 
Reporting Period:
30-Apr-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 the Department of Energy (DOE) related to the
Research, Development and Demonstration (RD&D) program for the American Centrifuge Program (ACP).
The $324K tax refund receipt shown on Schedule MOR-1a is not included as a receivable (neither balance nor collected).
 
 
 
 
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. has received orders that allow payment of pre-petition taxes and 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).
 




 
 
 
MOR-1a

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

 
 
Reporting Period:
30-Apr-14

 
 
 
 
 
 
Federal Tax I.D. #
52-2107911

 
 
 
 
Schedule of Cash Receipts and Disbursements
(000's)
 
 
 
TIME PERIOD:
 
 
 
4/1/2014 - 4/30/2014
 
 
 
 
 
 
 
 
Debtor
Activity
Amounts
USEC Inc.
Beginning Total Cash (Bank Balance)
$13,635
 
 
Less: Outstanding Checks
(298
)
 
Beginning Total Cash (Book Balance)
$13,337
 
 
 
 
 
Receipts
 
 
 
 
DOE RD&D Reimbursement
8,366

 
 
Other Receipts (Tax Refund)
324

 
 
Total Operating Receipts
8,690

 
 
 
 
 
Disbursements (book basis)
 
 
 
Headquarters Payroll & Benefits
(3,564
)
 
 
Headquarters Overhead
(138
)
 
 
Headquarters Outside Services
(77
)
 
 
ACP Payroll & Benefits
(3,325
)
 
 
ACP Machine Technology & Operations
(1,422
)
 
 
ACP Manufacturing, EPC and PETE
(1,850
)
 
 
Total Operating Disbursements
(10,377
)
 
 
 
 
 
Net Operating Cash Flow
(1,687
)
 
 
 
 
 
Non-Operating Items:
 
 
 
Professional Fees
—

 
 
Interest
—

 
 
Other (Utility Deposit)
(50
)
 
 
Total Non-Operating Disbursements
(50
)
 
 
 
 
 
Funding Activities:
 
 
 
Cash funding provided by draws on DIP:
19,500

 
 
Cash payments on DIP
—

 
 
Cash payments on Pre-Petition Secured Loan
(17,440
)
 
 
Total Funding Activities
2,060

 
 
 
 
 
Total Change in Cash
323

 
 
 
 
 
Ending Cash (Book Balance)
13,661

 
 
Plus: Bank Adjustment & Bank Interest
16

 
 
Plus: Outstanding Checks
161

 
Ending Cash (Bank Balance)
13,838





 
 
 
MOR-1b
 
 
 
 
 
 
 
 
In re USEC Inc.
 
 
 
 
Case No.
 
14-10475 (CSS)
 
Reporting Period:
 
30-Apr-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
$13,661
USEC Inc.
JP Morgan Chase
XX5349
$0
USEC Inc.
JP Morgan Chase
XX4574
$2
USEC Inc.
JP Morgan Chase
XX6241
$175
USEC Inc.
JP Morgan Chase
XX7309
$0
USEC Inc.
JP Morgan Chase
XX2733
$0
USEC Inc.
Merrill Lynch
XX3365
$0
USEC Inc.
JP Morgan Chase
XX2733
$0
 
 
 
 
Total USEC Bank Account Balances, per statements
 
$13,838





 
 
 
 
MOR-2
In re USEC Inc.
 
 
 
 
 
 
Case No.
14-10475 (CSS)
 
 
Reporting Period:
 
30-Apr-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
—

 
 
 
          Revenue
—

 
 
 
 
 
 
 
 
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
—

 
 
 
          Cost of Sales
—

 
 
 
 
 
 
 
 
Gross Profit
 
 
 
 
     Separative Work Units
—

 
 
 
     Uranium
—

 
 
 
     U. S. Government Contracts and Other
—

 
 
 
          Gross Profit
—

 
 
 
 
 
 
 
 
Gross Margin %
—

 
 
 
 
 
 
 
 
Special Charges
6

 
 
 
Advanced Technology Costs
11,048

 
 
 
Selling, General and Administrative
2,680

 
 
 
Other (Income) Expense, Net
(7,185
)
 
 
 
Intercompany Cost Recovery
498

 
 
 
Operating Income (Loss)
(7,047
)
 
 
 
 
 
 
 
 
Interest Expense
2,171

 
 
 
Preferred Stock Financing Costs
—

 
 
 
Interest (Income)
(5
)
 
 
 
Reorganization Costs
1,312

 
 
 
Income (Loss) from Continuing Ops before Taxes
(10,526
)
 
 
 
Provision (benefit) for Income Taxes
—

 
 
 
Net Income (Loss)
(10,526
)
 
 
 
Equity in earnings (Loss) of non-filing entities
5,720

 
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO USEC INC.
(4,805
)
 
 
 




 
 
 
 
MOR-3

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

 
 
 
Reporting Period:
30-Apr-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
14,700

 
Short-term debt (DIP)
17,000

Short-term investments
—

 
Accounts payable and accrued liabilities
21,500

Accounts receivable
 
 
          Total Current Liabilities
38,500

     Customers
—

 
 
 
     DOE
16,300

 
OTHER LIABILITIES
 
          Total Receivables
16,300

 
Postretirement health and life benefit obligations
—

Inventories
 
 
Pension benefit liabilities
25,800

     Separative work units
—

 
Deferred revenue and advances
—

     Uranium
—

 
Other liabilities
24,500

     Uranium provided by customers
—

 
          Total Other Liabilities
50,300

     Materials & Supplies
200

 
 
 
          Total Inventories
200

 
LIABILITIES SUBJECT TO COMPROMISE
988,400

 
 
 
 
 
Deferred Costs Related to Deferred Revenue
—

 
TOTAL LIABILITIES
1,077,200

Receivable from non-filing entity
—

 
 
 
Other
11,300

 
STOCKHOLDERS' EQUITY
 
          Total Current Assets
42,500

 
Common stock, par value $.10 per share
500

 
 
 
Excess of capital over par value
149,300

PROPERTY, PLANT AND EQUIPMENT
 
Treasury stock
(34,300
)
Construction work in progress
—

 
Accumulated other comprehensive income (Loss)
(68,900
)
Leasehold improvements
1,700

 
Equity in Subsidiary
490,500

Machinery & equipment
8,400

 
Retained earnings
(1,050,400
)
 
10,100

 
          Total Stockholders' Equity
(513,300
)
Less: Accumulated depreciation & amortization
(8,600
)
 
 
 
   Property, Plant and Equipment, Net
1,500

 
TOTAL LIABILITIES &
 
 
 
 
STOCKHOLDERS' EQUITY
563,900

OTHER ASSETS
 
 
 
 
Investment in non-filing entity
490,500

 
 
 
Deposit for surety bonds
29,400

 
 
 
          Total Other Assets
519,900

 
 
 
 
 
 
 
 
TOTAL ASSETS
563,900

 
 
 
 
 
 
 
 
 
 
 
 
 




 
 
 
 
 
 
MOR-4

 
 
 
 
 
 
 
In re USEC Inc.
 
 
 
 
 
 
 
 
 
 
 
Case No.

14-10475 (CSS)

 
 
 
 
Reporting Period:
 
30-Apr-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
 
 
$
—

$
558

$
(558
)
$
—

FICA-Employee
 
 
$
—

$
258

$
(258
)
$
—

FICA-Employer
 
 
$
581

$
245

$
(255
)
$
571

Unemployment
 
 
$
38

$
—

$
(38
)
$
—

Income
 
 
$
—

$
—

$
—

$
—

Other:
 
 
$
—

$
—

$
—

$
—

Total Federal
 
 
$
619

$
1,061

$
(1,109
)
$
571

 
 
 
 
 
 
 
State & Local
 
 
 
 
 
 
Withholding
 
 
$
13

$
119

$
(128
)
$
4

Unemployment
 
 
$
56

$
—

$
(56
)
$
—

Sales
 
 
$
(1
)
$
31

$
(31
)
$
(1
)
Excise
 
 
$
—

$
—

$
—

$
—

Real Property
 
 
$
—

$
—

$
—

$
—

Personal Property
 
 
$
—

$
—

$
—

$
—

Other: Income
 
 
$
(19
)
$
—

$
—

$
(19
)
Other: Franchise
 
 
$
45

$
15

$
—

$
60

Total State and Local
 
 
$
94

$
165

$
(215
)
$
44

 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL Taxes
 
 
$
713

$
1,226

$
(1,324
)
$
615

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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.
$
969

$
843

$
154

$
—

$
—

$
1,966





 
 
 
 
MOR-5

 
 
 
 
 
 
 
 
 
 
 
 
 
In re USEC Inc.
 
 
 
 
 
 
 
Case No.
14-10475 (CSS)
 
 
Reporting Period:
30-Apr-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
 
$17,444
 
 
+ Amounts billed during the period
 
 
7,185

 
 
- Amounts collected during the period
 
 
(8,366
)
 
 
Total Accounts Receivable (Net) at the end of the reporting period
 
$16,263
 
 
 
 
 
 
 
 
Accounts Receivable Aging
 
 
Amount
 
 
Current
 
 
$16,263
 
 
0 - 30 days old
 
 
$0
 
 
31 - 60 days old
 
 
$0
 
 
61 - 90 days old
 
 
$0
 
 
91+ days old
 
 
$0
 
 
Total Accounts Receivable
 
 
$16,263
 
 
Contractual Allowance / Uncollectible
 
 
$0
 
 
Accounts Receivable (Net)
 
 
$16,263
 





 
 
 
 
 
 
MOR-6
 
 
 
 
 
 
 
In re USEC Inc.
 
 
 
 
 
 
 
 
Case No.
14-10475 (CSS)
 
 
 
Reporting Period:
30-Apr-14
 
 
 
 
 
 
 
 
 
 
Federal Tax I.D. #
52-2107911
 
 
 
 
 
 
 
Payments to Professionals
(000's)
 
 
 
 
 
 
 
 
Professionals
 
 
 
 
 
 
Name
Amount Paid During Month
Total Paid to Date
 
 
 
 
-None-
$0
$0
 
 
 
 
 
 
 
 
 
 
 
Total Payments to Professionals
$0
$0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Post Petition Secured Notes Adequate Protection Payments
(000's)
 
 
 
 
 
 
 
 
Name of Creditor
Amount Paid During Month
 
 
 
 
 
United States Enrichment Corporation - DIP1
$39
 
 
 
 
 
United States Enrichment Corporation - Secured Intercompany1
$582
 
 
 
 
 
 
 
 
 
 
 
 
Total Payments
$621
 
 
 
 
 
(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:
30-Apr-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