The plan would put the company, which the U.S. government contracts, into the hands of bondholders. Judge Christopher Sontchi approved voting materials for USEC's restructuring at a hearing in U.S. Bankruptcy Court in Wilmington, Del. on Monday. The company plans return to court in September after the ballots come in to try to confirm its Chapter 11 plan.
USEC has been talking with the U.S. Department of Energy to extend the government support that has sustained the power plant fuel supplier for years. The company has been seeking a loan guarantee but has yet to receive one.
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USEC is also waiting for Congress to decide on more funding under a contract for the American Centrifuge Project, according to The Wall Street Journal.
The stock was up 12.42% to $6.79 at 11:45 a.m. More than 4.6 million shares changed hands, compared to the average volume of 854,589.
Separately, TheStreet Ratings team rates USEC INC as a "sell" with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
"We rate USEC INC (USU) a SELL. This is based on the combination of unfavorable investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself."