Molycorp Inc., the Greenwood Village-based miner of rare earth elements used in cellphones and cars, is skipping its second loan payment in two weeks.
Molycorp officials on Monday said they would take advantage of a 30-day grace period on a $3.36 million semi-annual interest payment related to 3.25 percent senior unsecured convertible notes that are due in 2016. The move, company officials say, will not trigger any cross-defaults on its other loans.
The company will use the grace period to continue evaluating debt restructuring options, the company said in a U.S. Securities and Exchange Commission filing.
On June 1, Molycorp delayed a $32.5 million interest payment on its 10 percent senior notes due 2020, citing a similar 30-day grace period.
Days later, The Wall Street Journal reported that Molycorp was bankruptcy protection and would file this month. Facing a $1.7 billion debt load, Molycorp enlisted advisers to help the firm restructure its debt.
