Molycorp Class Claimants Fight Ch. 11 Liability Releases

Law360, Wilmington (March 16, 2016, 10:02 PM EDT) -- Lead shareholders in a Colorado federal securities class case targeting Molycorp's California mine are seeking bankruptcy court authority to reject liability releases in the company’s Chapter 11 reorganization, saying the provisions are impermissible and jeopardize class member rights.

The move created a new wrinkle for Molycorp’s already contested effort to secure plan confirmation by March 30. Holders of some $680 million in high-interest notes already have said they will fight rejection of their bid for mineral rights at Molycorp’s Mountain Pass mine, as well as revised equity calculation methods they see as harming their interests.

Michael S. Etkin of Lowenstein Sandler...

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