The Conversation (0)
The Wall Street Journal reported that some bonders and unsecured creditors for Molycorp (OTCMKTS:MCPIQ) are claiming that Molycorp isn’t doing its best to steer itself out of bankruptcy. The creditors claim that the company “has capitulated to demands from Oaktree Capital Group.”
The Wall Street Journal reported that some bonders and unsecured creditors for Molycorp (OTCMKTS:MCPIQ) are claiming that Molycorp isn’t doing its best to steer itself out of bankruptcy. The creditors claim that the company “has capitulated to demands from Oaktree Capital Group.”
As quoted in the publication:
The company is mothballing its California production facility and is pinning its hopes on its rare-earths processing business, Neo. Bondholders said a “frantic” two-month sale effort is not the best way to get the value out of the business, and they have moved to terminate the period during which only Molycorp can propose a chapter 11 plan.
Oaktree last year reached a deal to provide up to $400 million in rescue financing to Molycorp, a deal that allowed Oaktree to negotiate for a relatively safe position in a restructuring of the company’s debt.
Click here for the full article from the Wall Street Journal.