Molycorp Makes the Case for Exiting Chapter 11 Bankruptcy

The Wall Street Journal reported that Molycorp (OTCMKTS:MCPIQ) has “laid out the financial facts” for its creditors, claiming that it should be allowed to exit its chapter 11 bankruptcy. Alternatively, the company could be pushed into liquidation.
As quoted in the publication:

The rare-earths company says it would be valued at $252 million at most in a liquidation scenario, far from enough to cover more than $2 billion in debts. Oaktree Capital Group,a major lender, would collect, at most, about half of what it is owed if Molycorp’s bid to exit bankruptcy whole fails, according to estimates in new bankruptcy-court documents.
The estimates are to be included with voting materials to be sent to creditors asked to vote on the distressed company’s fate. Set for court review in January, the voting materials set out Molycorp’s case for confirmation of its chapter 11 plan. January will see a test of the adequacy of the information the company has provided to creditors. To win confirmation, Molycorp must demonstrate its chapter 11 reorganization plan will be better for creditors than liquidating the company.

Click here for the full article.