Molycorp Senior Creditors Said to Submit Restructuring Plan

Molycorp Inc. is considering a proposal from senior creditors that would swap at least some of their bonds for equity as the rare-earths producer struggles to manage $1.6 billion of debt, according to two people with knowledge of the matter.

Houlihan Lokey and Kramer Levin Naftalis & Frankel, which are advising holders of Molycorp’s $650 million of 10 percent first-lien secured notes maturing in June 2020, submitted the plan in late April and signed non-disclosure agreements, said the people, who asked not to be named because the matter is private. The proposal includes swapping a portion or all of the notes into equity, the people said.