Sunday, June 28, 2015

WSJ: "Molycorp’s Clash With Oaktree Delays Bankruptcy Loan Approval"


"The bankruptcy restructuring leaves Oaktree’s loans in place at the top of Molycorp’s pile of debt, said Molycorp lawyer Paul Leake. Senior bonds will sacrifice their stakes for equity and junior bonds will be offered an opportunity to invest in the turnaround effort, under the plan. The bankruptcy financing is designed to convert to secured bond debt when Molycorp exits, a feature that is geared to making sure Oaktree isn't impaired, Mr. Leake said."

1 comment:

Mr. Gotham said...

As if the DIP terms weren't expensive enough before, they are going to get tougher now without Neo in the collateral pool.