Friday, May 15, 2015

Bloomberg Reporting: "Hedge Fund JHL Said to Lead Talks for Molycorp Bankruptcy Loan" $MCP

"The DIP loan, which may range from $150 million to $200 million, would give the company fresh cash instead of exchanging existing notes for the debt, the people with knowledge of the talks said. Under the creditors’ bankruptcy proposal, the first-lien notes would be converted into equity in a reorganized entity, they said."
So, it sounds like that 10% note that's been trading for around 50 cents on the dollar is the fulcrum and the unsecured notes (which have been trading for less than 10 cents) and the equity would get wiped out.

Maybe someone should tell these guys, who own $170 million of the common stock!

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