NEW YORK — Rare earth metals company Molycorp said it won’t make a $32.5 million interest payment that was due Monday, but says it isn’t in default on its debts.
The company said it is allowed to use a 30-day grace period on the interest payments, which stem from senior secured notes that are due in 2020.
Molycorp said the delay won’t put it into default on its other debts and shouldn’t affect its current operations.
The Greenwood Village-based company has retained financial and legal advisers to help it restructure its debt and will use the grace period to review its options for achieving that goal.
Molycorp’s stock price has tumbled as the company dealt with problems including falling prices for the metals it produces, difficulties in expanding a mine in California and cash shortfalls.
The Securities and Exchange Commission launched an investigation into the company’s public disclosures in 2012 but ultimately did not recommend taking any enforcement action.
Molycorp Inc. shares fell 10 cents to close at 43 cents Monday and are down 84 percent over the past year. The stock traded as high as $79.16 in May 2011.
