If a company or an organization is unable to repay its creditors or keep its business alive, the debtor under the norms and rules can file for the Chapter 11 Bankruptcy. In this genre of bankruptcy, the debtor usually proposes a reorganization plan to take care of their monetary turbulence.
When pursued in the right way, the Chapter 11 bankruptcy has provided with relief to the many numbers of companies and organization. In a relatively latest course of action, there has been the talk of Molycorp Inc. which won the court approval to exit chapter 11 bankruptcies. Just like any other company, this one too had put forward a reorganization plan in front of the court. And it is evident that the plan has very much been accepted. When the company filed the Chapter 11 bankruptcy in the year 2015, it was under a $1.7 billion debt.
So, the plan which has been accepted and confirmed involves putting the organization in the hands of a senior management Oaktree capital management. This implies that the creditors whose money has not been secured will be sharing a minority share in the company. The bondholders of the Molycorp Inc. are in the position to purchase mineral rights and intellectual properties which are associated with the facility. The surety bonds and the scrap value of the plant are being witnessed as providing money for the cleanup.
The scenario has definitely benefitted the Molycorp Inc. to plunge out of the debt and monetary turbulence.