Final approval of is being delayed because the investment fund might have too many co-owners.
Although Oaktree affiliates would own more than 92 percent of the once its reorganization plan is implemented, about 3,000 people would own the rest, which might force the new Molycorp to register as a public company, said Oaktree attorney Andrew Leblanc in court. Oaktree and other creditors are trying to find a way to keep that from happening.
Molycorp has delayed asking U.S. Bankruptcy Judge Christopher Sontchi to sign a final order approving its reorganization plan until legal language is worked out by creditor attorneys.
Even after the order is signed, the company might need as long as six months to get all regulatory approvals needed to exit bankruptcy, Molycorp attorney Paul Leake said in court Tuesday in Wilmington, Del.
Attorney Luc Despins, who represents the creditors who will become minority owners, said he expects the issues holding up the judge’s signature to be resolved soon.
The case is In re Molycorp Inc., 15-bk-11357, U.S. Bankruptcy Court, District of Delaware (Wilmington).
