Tue, Sep. 1, 11:48 AM
- Rare earths producers from China and Japan have approached Molycorp (OTCPK:MCPIQ) about buying some of the bankrupt miner’s non-U.S. assets, Bloomberg reports.
- The facilities are said to include plants in Asia that produce and process metals, including neodymium, which is used in making magnets for electric cars and wind turbines.
- The news comes two months after MCP's bankruptcy filing and a week after announcing the company will shut its Mountain Pass facility in California by October.
Wed, Aug. 26, 7:50 AM
- Molycorp (OTCPK:MCPIQ) says it will transition its rare earth facility in Mountain Pass, Calif., to a "care and maintenance" mode while it plans to continue serving rare earth oxide customers through its production facilities in Estonia and China.
- Rare earth pricing, which has declined dramatically over the past four years, was a key factor in the decision to suspend rare earth production at Mountain Pass, according to company officials.
Mon, Aug. 10, 5:30 PM
- Molycorp (OTCPK:MCPIQ) files to delay its 10-Q, citing the complexity of the calculations required to measure the impairment of its fixed assets.
- MCP says it expects to report a net loss of $256M for Q2 and $358M for H1, compared to losses of $84M in $170M in the respective comparable periods a year ago.
- The net losses described for the current year do not include any significant impairment charges related to the company's Mountain Pass facility and are thus subject to further revision.
Wed, Jul. 22, 8:50 PM
- Molycorp (OTCPK:MCPIQ) says it's secured a court OK for an improved debtor-in-possession finance package of $130M (net), compared with a $22M package approved July 2.
- Oaktree Capital is again providing the package, which as originally set could have run to $292M.
- The company says the new package means additional liquidity and reduced costs and gets it extra time to pursue its Chapter 11 reorganization.
Thu, Jul. 16, 2:34 PM
- Molycorp (OTCPK:MCPIQ) says the fate of its Mountain Pass, Calif., rare earths facility is still up in the air but that a complete shutdown is not an option.
- Molycorp says it is weighing a number of options for the operation, and 40-200 of 400 total jobs could be saved, depending on how much of the facility the company decides to keep running while it addresses its $1.7B debt, Dow Jones reports, citing newly filed bankruptcy court papers.
- Lenders have been eyeing MCP's profitable Neo processing business but fretting over money-losing Mountain Pass; the company says it needs both businesses for long-term profitability in a market where any shift in policy from China can reset the picture dramatically.
Thu, Jul. 2, 11:37 PM
- Molycorp (OTCPK:MCPIQ) says it received U.S. bankruptcy court approval for $22M in interim debtor-in-possession financing from Oaktree Capital to support its operations.
- The Oaktree loan eventually could run as high as $292M if it is approved in final form at a hearing scheduled for July 20.
- MCP says it now has the funds to continue its operations and to move forward on releasing funds to pay suppliers; between now and the final hearing, the Mountain Pass facility will continue to run "in an orderly and controlled way."
- Earlier: Molycorp lines up new bankruptcy loan from Oaktree
Thu, Jul. 2, 8:43 AM
- In an about-face, Molycorp (OTCPK:MCPIQ) has chosen bankruptcy financing from lender Oaktree Capital over a competing offer from secured bondholders, setting off a new round of court fights.
- Terms of the Oaktree financing require MCP to mothball its money-losing Mountain Pass, Calif., rare earths facility, and sell the money-making Neo Material Technologies operations.
- Bondholders say MCP needs to keep Neo to remain viable over the long haul, and that the Oaktree financing would end MCP’s hopes of surviving as a unified company and lead to a sale designed to hand Neo over to Oaktree.
- MCP filed for chapter 11 bankruptcy protection last week.
Fri, Jun. 26, 3:11 PM
- Molycorp (NYSE:MCP) has failed to gain approval from a U.S. bankruptcy judge to borrow $225M at the company's first bankruptcy hearing.
- The judge reportedly agreed with the objection by an affiliate of Oaktree Capital Management that argued MCP could not justify its need for the money, which would deepen the company's insolvency.
Thu, Jun. 25, 4:08 AM
- Molycorp (NYSE:MCP) has filed for Chapter 11 bankruptcy protection along with its North American subsidiaries to restructure $1.7B of debt in its U.S. and Canadian operations.
- The company has also obtained agreement for up to $225M in new debtor-in-possession financing.
- The plan marks a dramatic turn for Molycorp, which rode temporary concerns of a shortage in rare earths elements to a $6B market capitalization in 2011, but has since then faced an oversupplied market.
- Previously: Molycorp to file for bankruptcy protection (Jun. 04 2015)
Mon, Jun. 15, 10:23 AM
- Molycorp (MCP +11.9%) says it will take advantage of a 30-day grace period on a $3.36M semiannual interest payment due today related to its 3.25% senior unsecured convertible notes due 2016, its second delay of a loan payment in two weeks.
- MCP says it plans to evaluate various options for restructuring its debt load, and that the decision will not trigger any cross-default provisions in other outstanding debt before the grace period ends and should not affect current operations.
- Earlier this month, WSJ reported that MCP was planning to file for Chapter 11 bankruptcy protection.
Thu, Jun. 4, 2:10 AM
- Molycorp (NYSE:MCP) plans to file for Chapter 11 bankruptcy protection as soon as this month, after skipping a $32M bond interest payment this past Tuesday, WSJ reports.
- The plan marks a dramatic turn for Molycorp, which rode temporary concerns of a shortage in rare earths elements to a $6B market capitalization in 2011. Since then, China has relaxed restrictions on exports of rare earths, oversupplying the market.
- Previously: S&P downgrades Molycorp, considers default move occurred (Jun. 02 2015)
Tue, Jun. 2, 3:59 PM
- Molycorp's (MCP -3.2%) corporate credit rating and senior secured and senior unsecured issue-level ratings are downgraded to D by Standard & Poor's after the company elected not to pay the $32.5M interest payment on its 10% senior secured notes due 2020.
- A payment default has not occurred under the indenture governing the notes, which provide a 30-day grace period, but S&P says it considers a default to have occurred, as it does not expect a payment to be made within the stated grace period given MCP's heavy debt burden.
- S&P says MCP has insufficient liquidity to operate beyond the next few months as it works with creditors to restructure its balance sheet.
Mon, Jun. 1, 7:39 AM
- Molycorp (NYSE:MCP) is expected to announce it will skip a $32.5M loan payment, triggering a 30-day grace period that could lead to a bankruptcy filing before the end of June, WSJ reports.
- MCP has suffered three straight years of quarterly losses, has $1.7B in debt, and has been able to generate only slightly more than half its goal of producing 20K metric tons/year at its Mountain Pass, Calif., rare earths mine.
- MCP -24.4% premarket.
Thu, May 7, 8:17 AM
Tue, May 5, 4:34 PM
- Molycorp (NYSE:MCP) is considering a proposal from senior creditors that would swap at least some of the company's bonds for equity as it struggles to manage $1.6B of debt, Bloomberg reports.
- The plan, which would cut MCP’s debt load and interest cost, reportedly is based on the creditor group’s expectation that the securities would be impaired in a restructuring while the company’s lower-ranking 3.25% convertible notes due in June 2016 would get wiped out.
- The first-lien bondholders are conducting due diligence on MCP’s business, with a focus on how fast its Mountain Pass mining and processing facility in California could ramp up production, according to the report.
Fri, Apr. 24, 12:47 PM
- China’s decision to scrap export quotas and taxes on rare earth elements may boost stalled demand for the products, Lynas (OTCPK:LYSCF, OTCQX:LYSDY) CEO Amanda Lacaze tells Bloomberg.
- Users have been drawing down on stockpiles while awaiting clarity over China’s policy on the export of the elements, Lacaze says.
- China, which produces ~85% of global supply, announced yesterday it will remove export tariffs on rare earths beginning May 1.
- Lynas, which said March was the first month in the company’s history in which it was cash flow positive, is seeking to restructure its debt before September, the CEO says.
- Relevant tickers: MCP, REE, AVL, GSM, GMO, OSN, REMX
MCPIQ vs. ETF Alternatives
Molycorp is the only advanced material manufacturer in the world that both controls a world-class rare earth resource and can produce high-purity, custom engineered rare earth products to meet increasingly demanding customer specifications. With 25 locations across 10 countries, the Company... More
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