Molycorp secures court approval for final $130m DIP financing
TORONTO (miningweekly.com) – Bankrupt US rare earths producer Molycorp on Wednesday proceeded with its Chapter 11 reorganisation process and received court approval for an improved debtor-in-possession (DIP) financing package provided by Oaktree Capital Management.
NYSE-listed Molycorp, which billed itself as the only global vertically integrated producer of rare earth products, said the approved DIP facility of new net financing of $130-million represented significant improvement over the interim $22-million DIP financing approved by the court earlier this month.
This included added liquidity, reduced costs and additional time to develop a plan of reorganisation that would be in the best interest of all parties.
Molycorp was being advised by investment banking firm Miller Buckfire & Co and was receiving financial advice from AlixPartners, Jones Day and Young, Conaway, Stargatt & Taylor LLP was acting as legal counsel to the company in this process.
Molycorp had, on June 25, along with its subsidiaries in North America, filed for Chapter 11 bankruptcy protection to restructure $1.7-billion of debt in its US and Canadian operations.
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