Ironshore Indemnity, Lexon Insurance Co. and Bond Safeguard Insurance Co. and Westchester Fire Insurance Company (collectively, the “Sureties”) filed with the U.S. Bankruptcy Court a joint motion for an order (i) directing the appointment of an examiner for the Molycorp Minerals case and (ii) extending the objection deadlines and adjourning the hearing date for Plan confirmation.
The motion explains, “Debtors’ blatant disregard of their disclosure requirements, the utter lack of transparency and inexcusable delay should not inure to the benefit of the Debtors and Oaktree. Simply stated, they should not be permitted to steamroll through the confirmation process without proper disclosure and sufficient time and notice for the Molycorp Minerals’ stakeholders to respond.”
The motion continues, “The appointment of an examiner as a fiduciary for the Molycorp Minerals’ estate with the limited authority proposed herein is the only fully independent procedure available to ensure that: (i) all transactions with Insiders are fully investigated and analyzed; (ii) any transfer of the Molycorp Minerals IP does not negatively impact the operations at the Mountain Pass Facility and Molycorp Minerals’ ability to sell its assets or otherwise reorganize its business; (iii) any transfer of the IP does not create environmental risks or leave the Mountain Pass Facility in a state of noncompliance with governmental regulations and its permit requirements; (iv); any transfer of the IP and Silmet AS stock is otherwise in the best interests of the Molycorp Minerals’ estate; and (v) if transfers of the IP and Silmet AS stock are determined to be in the best interest of the Molycorp Minerals’ estate, that a transparent marketing and sale process is conducted and fair consideration is paid for the assets.”
The Sureties also filed a motion to shorten the notice period for consideration of the examiner motion. Read more Molycorp bankruptcy news.
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