Molycorp Emerges From Bankruptcy, Leaves Mine Behind

Shown here during its brief operational life, the Mountain Pass rare-earths mine in California remains mired in separate
bankruptcy proceedings after its former owner Molycorp emerged from Chapter 11 and reorganized as Neo Performance
Molycorp Inc. and certain of its affiliates emerged from Chapter 11 bankruptcy protection at the end of August. The newly reorganized company, now known as Neo Performance Materials, includes Molycorp’s downstream rare earths processing and distribution facilities, but does not include its Mountain Pass, California, rare earths mine and processing facilities, which were placed on care and maintenance in 2015. Mountain Pass remains in Chapter 11 under a separate bankruptcy proceeding.

Neo Performance Materials is organized into three business segments: Neo Chemicals and Oxides, Neo Magnequench, and Neo Rare Metals. The business operates globally with sales offices and production facilities in 10 countries: Japan, China, Thailand, Estonia, Singapore, Germany, the United Kingdom, Canada, the United States and South Korea.

The company produces rare earth and zirconium-based engineered materials, magnetic powders, and rare metals that are used in a wide range of technology applications across many sectors, including consumer electronics, fiber optics, hybrid and electric vehicles, and clean energy technologies.

Neo Performance Materials is a privately held company with executive offices in Toronto, Canada, and is composed of a number of operating subsidiaries organized under a holding company based in the Cayman Islands. It is led by the prior Molycorp management team under Geoff Bedford, president and CEO.

Shares of common stock of the former Molycorp Inc. are no longer available for trading. Previous shares of common stock have been canceled with no distribution to the holders.

Bedford said, “We emerge with a strong financial foundation under a new brand that speaks to our continued focus on performance and innovation. We have a commonality with the funds managed by Oaktree Capital Management, an affiliate of which is our largest shareholder, in a shared vision and commitment to our customers with the goal of long-term growth and value creation that will benefit everyone associated with our company ... We are already achieving significant milestones in bringing new applications and solutions to market through collaboration with our customers, and we are now in a much stronger position to continue down this path of value creation for our stakeholders.”

As featured in Womp 2016 Vol 10 -