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Molycorp Fails to Find Buyer, Fate of Mountain Pass Still Unknown
Mar. 09, 2016 09:32AM PST
Rare Earth InvestingThe Wall Street Journal reported that Molycorp (OTCMKTS:MCPIQ) has failed to garner any acceptable offers for its business, but Bondholders are crying foul, stating the company should not have rejected their bid.
The Wall Street Journal reported that Molycorp (OTCMKTS:MCPIQ) has failed to garner any acceptable offers for its business, but Bondholders are crying foul, stating the company should not have rejected their bid.
As quoted in the publication:
After scrapping an auction because of a lack of acceptable bids, Molycorp is trying to get out of bankruptcy reorganized around one line of business, Neo, with the fate of another still up in the air. Mountain Pass, a facility in California that is the only U.S. source of rare-earths elements used in consumer electronics, went unsold and may be liquidated.
Bondholders are saying Molycorp wrongly rejected their bid for the Mountain Pass facility—the only bid that came in for a line of business Molycorp spent $1.7 billion to establish.