Bondholders that have been at odds with rare-earths company Molycorp have agreed to a settlement that could ease approval of the company’s chapter 11 turnaround plan, the Wall Street Journal reported today. Molycorp, which filed for bankruptcy protection after the dive in prices for its products, is slated to emerge largely the property of Oaktree Capital Management, a secured lender that has been battling bondholders for control of the distressed business. A settlement unveiled on Friday recognizes the bondholders as the winning bidders on mineral rights at Molycorp’s mothballed Mountain Pass, Calif., mining facility, the sole U.S. source of elements used in consumer electronics. The ultimate fate of Mountain Pass won't be decided this week, when Molycorp asks a judge to sign off on its chapter 11 exit plan. Bondholders are trying to buy some of the assets but not the mine itself.
