Molycorp (NYSE:MCP) is considering a proposal from senior creditors that would swap at least some of the company's bonds for equity as it struggles to manage $1.6B of debt, Bloomberg reports.The plan, which would cut MCP’s debt load and interest cost, reportedly is based on the creditor group’s expectation that the securities would be impaired in a restructuring while the company’s lower-ranking 3.25% convertible notes due in June 2016 would get wiped out.The first-lien bondholders are conducting due diligence on MCP’s business, with a focus on how fast its Mountain Pass mining and processing facility in California could ramp up production, according to the report.
MCP is UNCH after hours
