Molycorp bankruptcy looms, but debt haircut “could give a longer lease of life”

By James Sean Dickson
Published: Friday, 05 June 2015

Chapter 11 bankruptcy arrangements could be on the cards for Molycorp, the sole US producer of rare earths. However, the company may see its fortunes improve should its highly-leveraged debt structure be reorganised and operational improvements continue.

US-based rare earths miner Molycorp Inc.’s shares were worth $74.22 each on 15 April 2011. On Monday this week, its shares closed at $0.42. The company invoked a grace period for a $32.5m debt interest payment and is looking increasingly likely to default.

In recognition of...