Molycorp Inc. failed to get approval from a U.S. bankruptcy judge on Friday to borrow about $44 million at the rare earth producer's first bankruptcy hearing, Reuters reported on Friday. Hon. Christopher S. Sontchi agreed with the objection by an affiliate of Oaktree Capital Management that Molycorp could not justify its need for the money, which would deepen the company's insolvency. The company will discuss with its creditors how to structure the loan and will return to court on Thursday. Molycorp, which filed for bankruptcy on Thursday, sought the money for its operations and to signal to customers and employees that the company would meet its commitments. Molycorp was seeking the money on an interim basis and had planned to return to court to seek approval to borrow up to $225 million.
