Deal Reached in Molycorp Bankruptcy

The Dow Jones Business News reported that junior and senior creditors of Molycorp (OTCMKTS:MCPIQ) have reached a deal to end the company’s bankruptcy.
As quoted in the publication:

Settlement papers filed in the U.S. Bankruptcy Court in Wilmington, Del., provide for an end to the quarrels, and either a stand-alone reorganization, or a sale of the entire company. In either case, sale or reorganization, Oaktree stands to walk away with 92.5% of the value, up to $513.8 million. The rest of the value, either in the form of equity or sale proceeds, will go to Molycorp’s junior creditors, settlement papers say.
The settlement also calls for the abandonment of claims against the company’s officer and directors, in exchange for a $3 million payment from insurance.

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