Niocorp Developments Ltd (NB)

[tedro84]

The Neo acquisition was potentially the single largest contributor to the Chinese domination. Neo wasn’t much more than a shell company for the Chinese run Magnequench. Further, Molycorp had very little debt prior to the acquisition. Project Phoenix was entirely funded by equity. The Neo acquisition was the first major debt that Molycorp took on. Subsequent debt deals prior to bankruptcy were simply efforts to hold up a failing company and was largely a battle between to competing funds to acquire the assets in order to hedge losses.