Earlier today, June 25, 2015, Molycorp, Inc., along with 20 of its subsidiaries, filed for Chapter 11 Bankruptcy protection in the U.S. Bankruptcy Court in Wilmington, Delaware. Molycorp mines 15 rare-earth elements, which are used in magnets, batteries, catalytic converters and many other high-tech products, which are specifically used by the military.
The Colorado-based company, which is the only miner and producer of such rare-earth elements in the United States, has failed to turn a profit since 2011. Molycorp states in court documents that it has secured $225 million in new financing to continue operations and has brokered an agreement with creditors to restructure its $1.7 billion in debt. The company’s facilities in the U.S. and around the world will continue to operate as usual. Representatives from Molycorp say they expect to exit Chapter 11 before the end of 2015.