Is Molycorp Bottoming?
Fabrizio Valerii • 32 Comments
Fabrizio Valerii • 32 Comments
Molycorp: Poised To Move Higher Still
Jason Bond • 40 Comments
Jason Bond • 40 Comments
Tue, Apr. 5, 5:57 PM
- Final approval of Oaktree Capital Management’s takeover of bankrupt miner Molycorp (OTCPK:MCPIQ) has been delayed because the investment fund may have too many partners in the deal, Bloomberg reports.
- Although Oaktree affiliates would own more than 92% of the company once its reorganization is implemented, ~3K people would own the rest, which may force the new MCP to register as a public company, which Oaktree and other creditors are trying to prevent.
- Even after the order is signed, MCP may need as long as six months to get all the regulatory approvals needed to exit bankruptcy, a company attorney said in court today.
- Now read Molycorp wins approval to exit Chapter 11 bankruptcy
Thu, Mar. 31, 10:59 AM
- Molycorp (OTCPK:MCPIQ) won court approval yesterday to exit Chapter 11 bankruptcy under a plan that leaves the fate of the rare earths company uncertain.
- The judge confirmed a plan that puts the company largely in the hands of senior lender Oaktree Capital Management, while the Mountain Pass mine in California could be facing liquidation or be targeted for a deal involving an unnamed foreign entity; bondholders won court approval to buy mineral rights and intellectual property associated with Mountain Pass, but are leaving the mine itself behind.
- To counter protests from regulators concerned Molycorp was walking away from environmental risks, the company points to surety bonds and the scrap value of the plant, which will help fund a cleanup.
- Now read Molycorp, Oaktree reach deal with bondholders in bankruptcy
Mon, Mar. 28, 4:45 PM
- Bondholders that have been at odds with Molycorp (OTCPK:MCPIQ) have agreed to a settlement that could ease approval of the company’s chapter 11 turnaround plan, WSJ reports.
- A settlement unveiled Friday reportedly recognizes the bondholders as the winning bidders on mineral rights at MCP’s mothballed Mountain Pass, Calif., mining facility.
- At a confirmation hearing later in the U.S. Bankruptcy Court in Wilmington, Del., bondholders will ask for approval to acquire mineral rights, some intellectual property, and other assets related to the Mountain Pass operation, but they would not take over the mine.
- Oaktree Capital Management, the company and the official committee of unsecured creditors earlier agreed to resolve disputes and give Oaktree 92.5% of the value in the reorganized company, with the rest going to junior creditors.
Tue, Mar. 8, 6:38 PM
- A failed effort to find a buyer has roiled the bankruptcy of Molycorp (OTCPK:MCPIQ), as it pursues a plan that would make the rare earths company largely the property of Oaktree Capital.
- After scrapping an auction because of a lack of acceptable bids, MCP is trying to get out of bankruptcy reorganized around one line of business, Neo, with the fate of its Mountain Pass rare earths facility in California up in the air.
- Bondholders are saying MCP wrongly rejected their bid for Mountain Pass, a decision MCP's lawyer defended at a court hearing today, saying bondholders attached too many conditions to their offer.
- Under questioning from the judge, the lawyer said MCP will make a decision about Mountain Pass before the chapter 11 plan is up for confirmation; hearings are scheduled to begin March 29.
Tue, Feb. 23, 4:47 PM
- Junior and senior creditors reach a deal that will speed the end of the bankruptcy of Molycorp (OTCPK:MCPIQ), and give senior lender Oaktree Capital Management most of the value in the rare earths company.
- The deal averts prolonged litigation between junior creditors and Oaktree over loans to MCP, which filed for chapter 11 protection in June 2015.
- However, the deal does not include investors who hold part of $650M of bonds issued by MCP, and excludes the government's pension insurer; both tell the U.S. Bankruptcy Court hearing in Delaware that they likely will oppose the plan of reorganization that would be drafted based on the settlement.
Fri, Jan. 8, 2:24 PM
- Molycorp (OTCPK:MCPIQ) bondholders wins approval from a bankruptcy judge for the right to trade their debt for company assets, clearing the way for an auction in March.
- MCP also agrees to give lower-ranking creditors and secured bondholders more influence over how the auction will be run, including the right to talk directly with potential bidders.
- MCP, which filed for bankruptcy protection in June, has spent several weeks in court-ordered mediation with creditors.
Dec. 29, 2015, 8:58 AM
- Molycorp (OTCPK:MCPIQ) has laid out the financial facts that it says justifies allowing it to exit chapter 11 bankruptcy in trimmed-down form as opposed to being pushed into a liquidation.
- The rare-earths company says it would be valued at $252M at most in a liquidation scenario, far from enough to cover more than $2B in debts.
- According to the estimates, major lender Oaktree Capital would collect, at most, about half of what it is owed if Molycorp's bid to exit bankruptcy fails.
Nov. 9, 2015, 5:58 PM
- Some of Molycorp's (OTCPK:MCPIQ) bondholders and unsecured creditors are "in full revolt" against the company’s version of a turnaround, challenging its right to stay in control of its chapter 11 bankruptcy, WSJ reports.
- In court filings, lawyers for bondholders and unsecured creditors claim Molycorp has capitulated to demands from Oaktree Capital and abandoned its duty to steer the best course out of bankruptcy.
- The bondholders are asking for a Nov. 16 hearing to challenge Molycorp’s bid to hang on to exclusive control of its bankruptcy proceeding.
Nov. 4, 2015, 7:03 AM
- Molycorp (OTCPK:MCPIQ) has filed a a joint plan to emerge from bankruptcy that proposes coming out Chapter 11 through a stand-alone reorganization or a sale of substantially all its assets.
- The plan has the backing of its largest pre-petition secured creditor and its post-petition lender, investment funds managed by Oaktree Capital Management.
- "If approved, the plan would help to significantly reduce our $1.9B of debt and cut our interest expense, putting us on a more solid financial and operational footing going forward," CEO Geoff Bedford said.
- The company has already begun reaching out to prospective buyers.
Oct. 13, 2015, 4:49 PM
- Molycorp’s (OTCPK:MCPIQ) unsecured creditors ask the bankruptcy court for help in investigating Oaktree Capital (NYSE:OAK), which they say loaded up the mining company with debt in transactions the creditors may sue to challenge in court.
- Among the transactions the creditors' group wants to probe are the $260M in loans OAK extended Molycorp and an affiliate in September 2014; the committee says just $110M was immediately available while the rest was tied to conditions Molycorp never met.
- "The Oaktree transactions transferred hundreds of millions of dollars’ worth of value to Oaktree and saddled many of the Molycorp entities with insurmountable debt obligations,” the committee wrote in court papers filed yesterday.
Sep. 1, 2015, 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.
Aug. 26, 2015, 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.
Aug. 10, 2015, 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.
Jul. 22, 2015, 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.
Jul. 16, 2015, 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.
Jul. 2, 2015, 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
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
Sector: Basic Materials
Industry: Industrial Metals & Minerals
Country: United States
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