GREENWOOD VILLAGE, Colo. (AP) — Rare earth metals company Molycorp has filed for Chapter 11 bankruptcy protection.
President and CEO Geoff Bedford said Thursday that the filings are an important step in helping to restructure its $1.7 billion debt with major creditors.
The Greenwood Village, Colorado-based company has faced problems including falling prices for the metals it produces, difficulties in expanding a mine in California and cash shortfalls. Its shares have tumbled.
The filings include Molycorp Inc. and its North American subsidiaries, as well as some non-operating subsidiaries outside North America.
Operations outside North America, with the exception of non-operating companies in Luxembourg and Barbados, are excluded from the filings. Molycorp Rare Metals (Oklahoma) LLC is also excluded from the filings because it is not 100 percent owned by the company.
The Securities and Exchange Commission launched an investigation into the company's public disclosures in 2012 but ultimately did not recommend taking any enforcement action.