Molycorp: Reorganization Plan Confirmed in Bankruptcy Court

Molycorp (OTC:MCPIQ) announced that its plan to emerge from Chapter 11 Bankruptcy protection was approved by the US Bankruptcy Court for the District of Delaware this week. The company had faced a number of objections to previous plans.
As quoted in the press release:

The confirmed Plan allows Molycorp’s downstream business units, Chemicals & Oxides, Magnequench, and Rare Metals to reorganize under new ownership with a significantly stronger balance sheet. The Plan features a settlement agreement between an affiliate of funds managed by Oaktree Capital Management L.P. (“Oaktree”), a secured creditor, and unsecured creditors, pursuant to which Oaktree will receive 92.5% of the equity and the unsecured creditors will receive 7.5% of the equity in the reorganized company. A settlement also was reached on the purchase through a credit bid by the ad hoc group of the Company’s 10% secured noteholders of the mineral rights and certain intellectual property of Molycorp Minerals (the “Sale”). The ad hoc group of 10% secured noteholders was the last major secured creditor group with which the Company had not reached a settlement in a mediation process that spanned several months.
Molycorp’s Mountain Pass mine was excluded from the Plan, and the equipment and surface property rights at the mine were excluded from the Sale.

Click here for the full press release.