Friday, 5 June 2015

Molycorp Bankruptcy Protection

Q143: Before the end of 2015, will Molycorp Inc. file for bankruptcy protection?
Yes: 70%

Molycorp, a US miner of rare-earth elements, has been experiencing serious financial problems, due to low prices for rare earth metals.  According to recent rumours, it may file for bankruptcy protection (see story here).  It seems that the plans are not finalized, and the rumours may be a bargaining tactic.  Still, I think that it is more likely than not that Molycorp will indeed file for bankruptcy protection by the end of year.  The most plausible alternative is some sort of negotiated settlement with their creditors.

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