Milbank Represents Oaktree Capital Management in Successful Reorganization of Rare Earth Producer Molycorp, Inc.

NEW YORK, April 1, 2016 /PRNewswire/ -- Capping its latest major bankruptcy assignment, Milbank, Tweed, Hadley & McCloy LLP has represented private equity investor Oaktree Capital Management LP in the successful chapter 11 reorganization of global metals and mining company Molycorp, Inc.

Molycorp's plan of reorganization was confirmed on March 30, following a two-day hearing in U.S. Bankruptcy Court for the District of Delaware. Under terms of the plan, secured lender Oaktree, which previously provided debtor-in-possession financing to Molycorp, was granted a 92.5% equity stake in the reorganized company, comprised of surviving "neo" rare earth processing entities and related businesses.

The remaining 7.5% equity was given to unsecured creditors, including 10% deficiency claim holders. The unsecured group will also receive $2 million in cash.

Specializing in the production of customized, rare earth and rare metal products used for the manufacturing of mobile devices, hybrid vehicles, GPS systems and other goods, Molycorp and several affiliates filed a voluntary chapter 11 proceeding in 2015.  At the time of its petition, the U.S.-Canadian company had approximately $2.5 billion in assets and $1.8 billion in liabilities.

The approval of the reorganization plan by U.S. Bankruptcy Judge Christopher S. Sontchi concluded a case that took the nation's only rare earth mining company into federal court last June. The confirmed plan settles all claims against Molycorp by Oaktree as well as groups representing the company's high-interest noteholders and unsecured creditors.

Milbank's team on behalf of Oaktree was led by Dennis Dunne, who heads the firm's Financial Restructuring Group, along with partners Samuel Khalil (Restructuring), Andrew Leblanc (Litigation), Eric Reimer (Finance) and Aaron Renenger (Litigation), along with special counsel Brian Kinney and associate Lauren Doyle.

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SOURCE Milbank, Tweed, Hadley & McCloy LLP

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