On June 25, 2015, Molycorp, Inc., the U.S. producer of rare earths, and its North American subsidiaries filed for chapter 11 bankruptcy protection.  A copy of the bankruptcy petition is attached here.   Debtors offer the declaration of Michael F. Doolan in support of their requested first day motions, a copy of which is attached here. 

Before the petition date, creditors holding more than 70 percent of the debtors' senior debt agreed to provide $225 million in financing, subject to Court approval.  A proposed restructuring support agreement plans to discharge more than $700 million in unsecured notes and for holders of $650 million in 10% senior secured notes to swap the debt for a majority stake in the reorganized company.  

At the first day hearing, however, the debtors failed to gain approval from U.S. Bankruptcy Judge Christopher S. Sontchi for $44 million in debtor-in-possession financing after objection by an affiliate of Oaktree Capital Management argued that the company's insolvency would deepen. Oaktree loaned debtors about $250 million in September 2014.

Debtors will return to bankruptcy court on Wednesday, July 1 at 10:00 a.m. following discussions with creditors on how to structure debtor-in-possession financing.  The case is Molycorp Inc., case no. 15-11357-CSS.