Deals
Oaktree Takeover of Molycorp Delayed by Too Many New Owners
- Buyer wants rare-earths miner to be private after bankruptcy
- Regulatory approvals for deal may take as long as six months
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Final approval of Oaktree Capital Management’s takeover of bankrupt miner Molycorp Inc. is being delayed because the investment fund may have too many partners in the deal.
Although Oaktree affiliates would own more than 92 percent of the rare-earths company once its reorganization is implemented, about 3,000 people would own the rest, which may force the new Molycorp to register as a public company, Oaktree attorney Andrew Leblanc said in court Tuesday in Wilmington, Delaware. Oaktree and other creditors are trying to find a way to keep that from happening.