Molycorp Inc. laid out the financial facts that it says justifies allowing it to exit chapter 11 bankruptcy in trimmed-down form as opposed to being pushed into a liquidation, the Wall Street Journal reported today. The rare-earths company says it would be valued at $252 million at most in a liquidation scenario, far from enough to cover more than $2 billion in debts. Oaktree Capital Group, a major lender, would collect, at most, about half of what it is owed if Molycorp’s bid to exit bankruptcy whole fails, according to estimates in new bankruptcy-court documents. The estimates are to be included with voting materials to be sent to creditors asked to vote on the distressed company’s fate. Set for court review in January, the voting materials set out Molycorp’s case for confirmation of its chapter 11 plan. Read more. (Subscription required.)
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