Ultra Safe Nuclear files for bankruptcy in a procedure aimed at facilitating its sale

Seattle-based Ultra Safe Nuclear Corp. says it has filed a Chapter 11 bankruptcy petition as part of a court-supervised process that will lead to its purchase through a public auction.

The process also involves what’s known as a stalking-horse bid for USNC’s assets, amounting to $28 million from Standard Nuclear Inc. The purchase agreement with Standard Nuclear is meant to set a floor for the bidding.

The bankruptcy filing covers USNC as well as its subsidiaries, USNC-Tech, USNC-Power and Global First Power. USNC says it has asked the federal bankruptcy court in Delaware for approval to complete the transaction in December.

USNC’s primary projects focus on the development of microencapsulated nuclear fuel and advanced modular reactors that would be smaller and more efficient than traditional nuclear power plants.

The company has also been working on next-generation radioisotope batteries and other nuclear projects for NASA and the Department of Defense. One project, aimed at developing designs for space-based nuclear thermal propulsion systems, was set up in collaboration with Jeff Bezos’ Blue Origin space venture and other industry partners.

Debtor-in-possession financing will keep USNC running during the sale process, the company said.

“Ultra Safe Nuclear remains steadfast in its dedication to bringing safe, commercially competitive, clean and reliable nuclear energy for global power and industrial markets,” Kirk Edwards, chairman of USNC’s board of directors, said in a news release. “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.”

Several personnel moves have taken place in connection with the transition. USNC’s founder, Francesco Venneri, left the CEO role in August and is now the company’s chief science officer. Kurt Terrani is currently listed as the president and interim CEO.

Paolo Venneri, who was USNC’s executive vice president, left the company last month and is a founding partner of Seattle-based Starward Solutions, which will provide consulting and technical services for the nuclear power industry. Michael Eades, who was chief scientist at USNC-Tech, is also a founding partner at Starward.