Molycorp Inc of Greenwood Village, CO has executed a restructuring support agreement with creditors that hold over 70% of the aggregate principal amount of the company’s 10% senior secured notes. The agreement provides for a financial restructuring of the company’s US$1.7 billion in debt and provides up to US$225 million in gross proceeds in new financing to support operations while the company completes negotiations with creditors. To facilitate its financial restructuring, Molycorp and its North American subsidiaries, together with certain of its non-operating subsidiaries outside of North America, last week filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. The company hopes to exit Chapter 11 before the end of 2015. Geoff Bedford, Molycorps CEO, said, The actions we have taken today are important steps toward achieving a restructuring of our US$1.7 billion debt with our major creditor constituencies. In doing so, the company expects to exit Chapter 11 with an appropriate financing framework to support our business going forward. Our operations in Europe and Asia are not part of todays filings, and these businesses are cash-flow positive and play a vital role in many key industries world wide. All of the company’s facilities in North America and around the world will continue operating as usual. We greatly appreciate the efforts of our lenders and the continued support of our customers. Molycorps primary asset in North America is a state-of-the-art rare earth manufacturing complex in Mountain Pass, CA.
Volume 29 issue 12