Bloomberg News

Impact Services Sold Unit to Kurion Before Bankruptcy

May 29, 2012

Impact Services Inc., the bankrupt nuclear waste processor storing 1 million pounds of scrap radioactive material at its Oak Ridge, Tennessee, facility, sold a unit that stabilizes nuclear debris and soils to Kurion Inc.

Kurion, based in Irvine, California, said in a statement today that it bought the GeoMelt business May 16, a week before Impact’s Chapter 7 filing for liquidation in U.S. Bankruptcy Court in Wilmington, Delaware. Impact listed less than $10 million in assets and as much as $50 million in debt in court papers.

With the purchase, Kurion gains access to vitrification -- the process of converting material into glass and “the ‘gold standard’ by international regulators for waste stabilization and isolation prior to disposal,” according to the statement.

U.S. Bankruptcy Judge Brendan Shannon ordered a status conference for tomorrow and a meeting of Impact creditors is scheduled for June 19.

Impact hasn’t produced complete financial data for its bankruptcy case and has until next week to do so.

Meg Lockhart, spokeswoman for the Tennessee Department of Environment and Conservation, said after the filing that Impact “shut its doors” May 18 and the site is being closely monitored. The company said in bankruptcy documents that the low-level radioactive material presents no immediate health hazard if properly stored.

In its statement, Kurion said that with the newly acquired technology, it’s “well positioned for awards at a number of sites,” including cleaning up the contaminated Daiichi Nuclear Power Plant soils at Fukushima Prefecture in Japan and at radioactive weapons complexes.

Impact Services, according to court records, is a unit of Impact Holdings Inc., which in turn is owned by Southpaw Credit Opportunity Master Fund LP of Greenwich, Connecticut.

The case is In re Impact Services Inc., 12-11605, U.S. Bankruptcy Court, District of Delaware (Wilmington).

To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at pmilford@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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