According to the U.S. Bankruptcy Court docket, Molycorp filed a Joint Chapter 11 Plan of Reorganization. The Court scheduled a December 8, 2015 confirmation hearing to consider the Disclosure Statement, with objections due by December 1, 2015.
The Disclosure Statement notes, “The Plan contemplates two different potential outcomes for these Chapter 11 Cases. One potential outcome is the sale of substantially all of the Debtors’ assets, in one or more transactions, and the distribution to creditors of the proceeds from such sale on the effective date of the Plan (the ‘Entire Company Sale’). Alternatively, the Plan proposes the sale (or liquidation) of only the assets of certain Debtors associated with the ownership and operation of the Debtors’ Mountain Pass rare earth mining facility (‘Mountain Pass’) located in San Bernardino County, California (the so-called ‘Molycorp Minerals Debtors’), and the reorganization around the Debtors’ remaining business units (together, the ‘Stand-Alone Reorganization’).”
Court-filed documents continue, “Under the Plan, however, the Debtors will seek to consummate such a sale only if (1) Molycorp, Inc.’s board of directors determines that such a sale maximizes the value of the Debtors’ estates and (2) the proceeds of such sale are sufficient to pay certain claims under the Plan, including payment in full of various claims asserted by Oaktree.”
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