A U.S. bankruptcy court has approved a plan that gives Molycorp Inc. enough cash to see it through chapter 11 bankruptcy reorganization, The Denver Post reported yesterday. Oaktree Capital Management will provide $130 million in a debtor-in-possession financing deal. The deal cuts financing costs and gives it additional time to develop a plan to emerge from bankruptcy. Molycorp filed for chapter 11 protection on June 25, dragged down by problems at its rare earths mine and mill, as well as a price drop in the minerals needed for making cellphones, magnets and wind turbines. In its filings, the company said that it was wrestling with $1.7 billion in debt.
