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Bankrupt Molycorp's reorganization delayed due to too many new owners

The final order approving the reorganization of bankrupt is being deferred asmajor creditor Oaktree Management may have too many partners in the deal, BloombergNews reported April 6.

Following reorganization,Oaktree will own 92.5% of the rare earths miner. Junior creditors, which numberaround 3,000, will own the remainder of the firm, which may force the new Molycorpto register as a public company, the report cited Oaktree attorney Andrew Leblancas saying.

Even after the order is signed, the company may need six monthsto secure all regulatory approvals needed to exit bankruptcy.

Molycorp filedfor bankruptcy in June 2015 with around US$1.7 billion in debt. U.S. BankruptcyJudge Christopher Sontchi has said that he would approve the reorganization in exchangefor elimination of the debt.