Molycorp Inc Takes Debt Payment Holiday: Stock Sinks
The rare earth oxide producer, which is trying to restructure its debt, traded recently at about $0.44 a share, down about $0.14.
Molycorp said the measure won't trigger a default during the grace period or affect its operations.
The company, with a current market capitalization of about $114.3 million, included a going concern statement in its March annual report and said it hired advisors to restructure its debt.
Leon Black's investment firm Apollo Global Management LLC owns a major share of Molycorp and may seek control in a restructuring, according to a Bloomberg report.
On Monday, Molycorp said it will use the 30-day grace period to continue to evaluate options related to debt restructuring.
The Greenwood Village, Colorado-based company said last month it would seek shareholder approval for a reverse stock split to regain compliance with listing requirements of the New York Stock Exchange.
Regarding its debt, "We cannot assure you that we will be able to meet repayment obligations," the company said last month.
Molycorp's shares area down more than 95 percent since prices for rare earths hit a peak in 2011.
A predecessor to Molycorp was formed in 2008 to purchase rare earths assets from Chevron Corporation (NYSE: CVX) and Molycorp went public in 2010.
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