Molycorp won court approval to exit Chapter 11 bankruptcy on Wednesday. According to the Wall Street Journal, Judge Christopher Sontchi confirmed a plan that puts a trimmed-down Molycorp largely in the hands of senior lender Oaktree Capital Management.
Unsecured creditors will share a minority stake in the company, which is being rebuilt around the Neo line of businesses that process rare earths. As for the Mountain Pass mine in California, which is the only U.S. mine producing rare earth elements, it could be facing liquidation, or it could be targeted for a deal involving an unnamed foreign entity. The situation is “fluid,” Judge Sontchi commented during hearings in the U.S. Bankruptcy Court in Wilmington, Delaware.
