Molycorp Inc., the only U.S. miner and processor of rare-earths elements, plans to file for chapter 11 protection as soon as this month to cut its $1.7 billion debt load, the Denver Post reported yesterday. The Greenwood Village, Colo.-based company is completing a plan that would involve senior bondholders exchanging some or all of their debt for ownership of the company, some of the people said. It is exploring options such as an equity sale to junior creditors and shareholders to ensure the company would emerge in sound financial health. Molycorp is also weighing an offer from the senior bondholders for a loan that would fund its operations during bankruptcy. Senior lender Oaktree Capital Management LP may also participate in that loan.
