Ultra Safe Nuclear Corp. (USNC), a developer of much-watched microreactor technology and advanced nuclear fuel, has filed for Chapter 11 bankruptcy. The move signals a critical restructuring phase through which the company will seek to secure new ownership while ensuring uninterrupted operations.
The company’s Oct. 29 filings at the U.S. Bankruptcy Court for the District of Delaware include its key subsidiaries: USNC-Power Ltd., which develops the company’s flagship 15-MWe (45 MWth) Micro Modular Reactor (MMR) technology; Global First Power Limited (GFP), focused on nuclear project development within Canadian markets; and USNC-Technologies, which leads USNC’s nuclear technology research and development initiatives. Each subsidiary plays a distinct role in USNC’s vertically integrated approach to advancing its Gen IV nuclear technology.
USNC’s petition is intended to facilitate a streamlined sale process under Section 363 of the Bankruptcy Code, which would allow the Oak Ridge, Tennessee–headquartered USNC to offload assets while continuing to operate its existing projects under a court-supervised process.
The company told POWER on Wednesday that while it remains steadfast in “facilitating a transparent sale process for all of its assets and projects,” the “continuation of the collaborations and various projects will be at the choosing of the new owner.” It added: “We note that amongst the various the entities considering acquisition of the company’s assets, significant interest exists for all ongoing projects.”
USNC is currently invested in two separate MMR high-temperature gas-cooled reactor (HTGR) projects. In Canada, GFP is spearheading a 15-MWe MMR demonstration at Canadian Nuclear Laboratories’ (CNL) Chalk River site in partnership with Ontario Power Generation. The project, which kicked off in 2019, is currently pursuing licensing, engineering and system development, and environmental assessment. Site work is slated to begin in 2026, with operations scheduled in 2028 or 2029. OPG told POWER that it made a mutually agreeable decision in August 2024, prior to the bankruptcy filing to exit the project, transferring its interest in GFP to USNC.
USNC on Wednesday acknowledged financial challenges contributed to the Chapter 11 filing. One factor was the recent passing of investor Richard Hollis Helms, whose family had invested $100 million and provided another $25 million in loans. “The loss of our founding and largest investor was a factor, but by no means the sole reason leading the company toward Chapter 11,” the company told POWER . “The company had been struggling financially for some time and despite significant interest in USNC, the company was unable to mature that interest into financial commitments,” it said.
According to the court filings, USNC’s estimated assets fall within the $10 million to $50 million range, while its estimated liabilities are reported within the $50 million to $100 million range. The company indicates funds will be available for distribution to unsecured creditors after administrative expenses and estimates the number of creditors, on a consolidated basis, at 1,000 to 5,000. However, the financial picture suggests that USNC faces a significant debt burden, which exceeds its reported assets. Because USNC has a consolidated ownership structure, the company will likely realign subsidiary operations under a single framework, with USNC’s leadership and board actively involved in the restructuring.