Creditors of bankrupt rare earths miner Molycorp reach deal
Mountain Pass in California is the only rare earths mine in the US. (Image courtesy of Molycorp).
Creditors of Molycorp Inc have reached a deal to divide up the value of the largest U.S. producer of rare earth materials, which should help clear the way for the company to exit bankruptcy.
According to court documents, the deal allows for the sale of the company or a reorganization and ends litigation between the company’s unsecured creditors and Molycorp’s lender, Oaktree Capital Management.
The unsecured creditors had accused Oaktree of using its position as lender to place an “exorbitantly expensive noose around Molycorp Group’s neck” and seize control once the miner had been pushed into bankruptcy.
Read more at Reuters
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