Bondholders and unsecured creditors “in revolt” over Molycorp’s bankruptcy exit plans
Published: Tuesday, 10 November 2015
Molycorp’s unsecured lenders are reportedly unhappy with the company’s plans for leaving bankruptcy, which would involve either a full segmented asset sale or the wiping of much of its debt, both scenarios which the non-senior creditors claim will unduly favour Oaktree Capital.
US-based rare earths producer
Molycorp Inc.’s bondholders and unsecured
creditors are in "open revolt", caused by recently issued plans
to exit Chapter 11 bankruptcy
protection, according to a report in the Wall Street
Court filings submitted by lawyers representing the creditor
groups "claimed Molycorp has capitulated to demands"