Rare earths producer Molycorp reached agreements with its junior creditors on Friday that clear the way for the bankrupt company to accept bids for the company and to ask creditors to vote on a plan to exit bankruptcy, Reuters reported on Friday. Molycorp, the only U.S. producer and processor of the rare earth elements that are used in cell phones and military equipment, has been battling its bondholders who have alleged it is doing the bidding of its lender, Oaktree Capital Management. Lawyers for Greenwood Village, Colo.-based Molycorp told a bankruptcy judge that it would allow advisers for the unsecured creditors’ committee and a group of bondholders to join calls and meetings about potential bids. An auction is scheduled for March 4.
