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Molycorp Cleared for Auction as `Monopoly Money' Fight Looms

  • Bankrupt rare-earths miner wins approval of bidding rules
  • Lower-ranking creditors to get more say in sale process
Updated on

Molycorp Inc. won court permission to put itself up for auction in March, even as bondholders complain that Oaktree Capital Management LP is trying to take over the rare-earth mining company using “Monopoly money.”

Molycorp filed for bankruptcy in June after rare earth prices dropped, making its California mine unprofitable. The company’s processing division, which sells rare earths from lower-cost mines in China, remains profitable. Rare earths are elements used in devices including magnets for electric cars and wind turbines.