Delaware judge refuses $44m in DIP funding for Molycorp
Published: Monday, 29 June 2015
The US rare earths miner has been dealt another blow in by a Delaware court judge, who ruled that the company does not require $44m in emergency funding. Senior noteholders are concerned that Neo Material Technologies, a profitmaking arm of Molycorp, may be forced to support the company’s wider losses.
US-based rare earths miner Molycorp Inc.
has been refused $44m in "debtor-in-possession" (DIP)
funding by judge Christopher Sontchi in the district court of
Delaware, who said that the company had not justified its need
for the money.
Molycorp announced its financial restructuring and Chapter
11 bankruptcy filing plans on 25...