Centrus Energy Corp. (NYSEMKT:LEU) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement
On January 11, 2018, Centrus Energy Corp. (“Centrus” or the “Company”) entered into a settlement agreement with the Department of Energy (“DOE”) and the United States government regarding breach of contract claims relating to work performed by the Company (formerly known as United States Enrichment Corporation) under contracts with DOE and subcontracts with DOE contractors.
On May 30, 2013, the Company filed a complaint in the U.S. Court of Federal Claims against the United States, requesting breach of contract damages in the amount of $38 million relating to work performed during the period 2003 through 2011. Throughout the litigation, the Company and DOE continued to disagree regarding additional payments owed totaling $6.3 million (which were not yet the subject of litigation) for work performed during the period 2012 through 2017.
Under the terms of the settlement agreement, DOE has agreed to settle all claims raised as part of and subsequent to the litigation for a total of $24 million and provides a complete close out of all such contracts and subcontracts settled under the settlement agreement without any further audit or review of the Company’s costs or incurred cost submissions. Under the settlement agreement, payment will be made by applying approximately $19.3 million of credits owed to the United States government by the Company and the United States government making payment of the remaining approximately $4.7 million. The Company has also agreed not to seek any additional payments under certain DOE subcontracts, as specified in the settlement agreement, for the periods of January 1, 2003, through September 30, 2017. Certain claims, including, but not limited to, any claims relating to work performed under American Centrifuge Project contracts after September 30, 2017, or any claims related to the Company’s subcontracts with UT-Battelle, LLC, for work at Oak Ridge National Laboratory, are excepted from the settlement agreement. Also excepted from the settlement agreement are the Company’s claims in its ongoing litigation with DOE relating to pension and post-retirement benefit cost adjustments.
The Company, or its subsidiaries, are party to a number of agreements or arrangements with the United States government, as described in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q.
Item 9.01 Financial Statements and Exhibits
(d)Exhibits.
CENTRUS ENERGY CORP ExhibitEX-10.1 2 usecsettlementagreementf….To view the full exhibit click here
