Ultra Safe Nuclear Corp., based in Seattle, has filed for Chapter 11 bankruptcy as part of a court-supervised process that will result in the company being purchased through a public auction. A stalking-horse bid for the company’s assets has been made by Standard Nuclear Inc. for $28 million, setting a floor for the bidding process. The bankruptcy filing covers USNC and its subsidiaries, including USNC-Tech, USNC-Power, and Global First Power. The company hopes to complete the transaction in December, pending approval from the federal bankruptcy court in Delaware.
USNC’s primary projects focus on the development of microencapsulated nuclear fuel and advanced modular reactors that are designed to be smaller and more efficient than traditional nuclear power plants. Additionally, the company has been working on next-generation radioisotope batteries and other nuclear technologies for NASA and the Department of Defense. USNC also collaborated with Jeff Bezos’ Blue Origin space venture and other partners on a project aimed at designing space-based nuclear thermal propulsion systems. Debtor-in-possession financing will allow USNC to continue operating during the sale process.
Following the bankruptcy filing, several personnel changes have taken place within USNC. Francesco Venneri, the company’s founder, stepped down from the CEO role and now serves as the chief science officer. Kurt Terrani has taken over as the interim CEO and president. Paolo Venneri, who was USNC’s executive vice president, left the company and joined Seattle-based Starward Solutions, a consulting firm providing technical services to the nuclear power industry. Michael Eades, previously the chief scientist at USNC-Tech, also joined Starward Solutions as a founding partner.
Kirk Edwards, the chairman of USNC’s board of directors, expressed the company’s commitment to bringing safe, commercially competitive, clean, and reliable nuclear energy to global power and industrial markets. Despite exploring various options, the decision to go through the court-supervised sale process was seen as the best path forward to ensure continuity across key technology initiatives. The sale process will be closely monitored by the bankruptcy court and is expected to be finalized in December, paving the way for new ownership of USNC.
The involvement of Standard Nuclear Inc. as a stalking-horse bidder for USNC’s assets provides a starting point for the auction process, guaranteeing a minimum bid amount of $28 million. The sale of USNC’s assets, including its subsidiaries and ongoing projects, could potentially attract interest from other buyers seeking to acquire advanced modular reactor technology and nuclear fuel development capabilities. The outcome of the public auction will determine the future ownership of USNC and the direction of its projects in the nuclear energy sector.
As USNC undergoes this court-supervised sale process, the company aims to maintain operational continuity to deliver on its technology initiatives. Despite the challenges posed by the bankruptcy filing, USNC remains dedicated to advancing nuclear energy solutions for various industries and applications. The transition in leadership, with key personnel taking on new roles within the company or joining external consulting firms, reflects a strategic realignment as USNC navigates through the sale process and looks ahead to new opportunities in the nuclear energy sector.
