Molycorp and its affiliated debtors filed a joint plan of reorganization with the U.S. Bankruptcy Court that proposes either a stand-alone reorganization that would substantially de-lever its balance sheet or a sale of substantially all of its assets. The plan represents a major process milestone in Molycorp’s bankruptcy process and, if approved, could position the company to emerge from Chapter 11. The plan is supported by the company’s largest creditor Oaktree Capital Management and its affiliates.
The plan envisions a dual-track process where the company’s assets are being actively marketed for sale, either as a whole or through the separate sale of its business units. The company’s four business units are Chemicals and Oxides, Magnetic Materials and Alloys, Rare Metals, and Resources, which consists primarily of its assets at Mountain Pass.
The company will put all of the assets up for sale. If the bid or bids received exceed certain values set forth in the plan, they will be sold. If the bids do not exceed the threshold, the company will be reorganized with Oaktree as its shareholder around its Chemicals and Oxides, Magnetic Materials and Alloys, and Rare Metals business units, and its assets at Mountain Pass will be sold.
Molycorp is reaching out to a broad range of prospective buyers. The first round of non-binding indications of interest are due by December 1. Interested parties should contact Alexander Tracy of Miller Buckfire at: Alexander.tracy@millerbuckfire.com.
