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Molycorp Plan Confirmation Reported

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Molycorp announced that the U.S. Bankruptcy Court has indicated that it will issue an order confirming its Fourth Joint Amended Plan of Reorganization; however that order has not yet been docketed by the Court. Under the Plan, Molycorp’s downstream business units – Chemicals & Oxides, Magnequench and Rare Metals – will reorganize under new ownership with a significantly stronger balance sheet.

The Plan features a settlement agreement between an affiliate of funds managed by Oaktree Capital Management, pursuant to which Oaktree Capital Management will receive 92.5% of the equity and the unsecured creditors will receive 7.5% of the equity in the reorganized company. A settlement also was reached on the purchase through a credit bid by the ad hoc group of the Company’s 10% secured noteholders of the mineral rights and certain intellectual property of Molycorp Minerals.

Geoff Bedford, Molycorp’s president and C.E.O., comments, “The Plan confirmation is a major step forward for the Company.” This rare earth materials’ miner filed for Chapter 11 protection on June 25, 2015, listing $2.6 billion in pre-petition assets.

Read more Molycorp bankruptcy news.

The post Molycorp Plan Confirmation Reported appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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