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T R O U B L E D C O M P A N Y R E P O R T E R
Saturday, July 16, 2016, Vol. 20, No. 198
Headlines
MOLYCORP INC: Net Loss Drops to $8.38 Million in May
PACIFIC SUNWEAR: Reports $6.29 Million Net Loss at May 28
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MOLYCORP INC: Net Loss Drops to $8.38 Million in May
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Molycorp, Inc., et al., filed with the U.S. Securities and Exchange
Commission their monthly operating report for May 2016.
The Debtors' statement of operations showed a net loss of $8.38
million in May 2016 on $13.33 million in total revenues, as
compared to $179.69 million net loss listed in April.
As of May 31, 2016, the Debtors listed consolidated total assets
of $381.01 million, consolidated total liabilities of $1.85
billion, and -$1.47 billion in consolidated total shareholders'
equity.
The Debtors had a beginning book balance of $69.23 million at the
start of the month. They listed total cash receipts of $5.91
million and total disbursements of $10.63 million. Taking into
account net intercompany funds totaling $937,000, the Debtors
had an ending book balance of $63.57 million.
A copy of the monthly operating report is available at the SEC at:
https://is.gd/xerz6F
About Molycorp, Inc.
Molycorp Inc. -- http://www.molycorp.com/-- is a global rare
earths and rare metals producer. Molycorp owns several prominent
are earth processing facilities around the world. It has a
workforce of 2,530 employees at locations on three continents.
Molycorp's Mountain Pass Rare Earth Facility in San Bernadino
County, California, is home to one of the world's largest and
richest deposits of rare earths.
Molycorp has corporate offices in the United States, Canada and
China. CEO Geoffrey R. Bedford, and other senior management
members are located in Molycorp's corporate offices in Toronto,
Canada. Other senior management members are located at its U.S.
corporate headquarters in Greenwood Village, Colorado.
Molycorp reported a net loss of $623 million in 2014, a net loss of
$377 million in 2013 and a net loss of $475 million in 2012.
As of March 31, 2015, the Company had $2.49 billion in total
assets, $1.78 billion in total liabilities and $709 million in
total stockholders' equity.
Molycorp and its North American subsidiaries, together with certain
of its non-operating subsidiaries outside of North America, filed
Chapter 11 voluntary petitions in Delaware (Bankr. D. Del. Lead
Case No. 15-11357) on June 25, 2015, after reaching agreement with
a group of lenders on a financial restructuring. The Chapter 11
cases of Molycorp and 20 affiliated debts are pending before Judge
Christopher S. Sontchi.
The agreement provides for a financial restructuring of the
Company's $1.7 billion in debt and provides up to $225 million in
gross proceeds in new financing to support operations while the
Company completes negotiations with creditors.
The Company's operations outside of North America, with the
exception of non-operating companies in Luxembourg and Barbados,
are excluded from the filings. Molycorp Rare Metals (Oklahoma),
LLC, with operations in Quapaw, Oklahoma, also is excluded from the
filings as it is not 100% owned by the Company.
Molycorp is being advised by the investment banking firm of Miller
Buckfire & Co. and is receiving financial advice from AlixPartners,
LLP. Jones Day and Young, Conaway, Stargatt & Taylor LLP act as
legal counsel to the Company in this process. Prime Clerk serves as
claims and noticing agent.
Secured creditor Oaktree Capital Management L.P., consented to the
use of cash collateral and to extend postpetition financing.
On July 8, 2015, the U.S. trustee overseeing the Chapter 11 case of
Molycorp Inc. appointed eight creditors of the company to serve on
the official committee of unsecured creditors. The Creditors
Committee tapped Ashby & Geddes, P.A. and Paul Hastings LLP as
attorneys.
* * *
Molycorp, Inc.'s Fourth Joint Amended Plan of Reorganization has
been confirmed by the U.S. Bankruptcy Court for the District of
Delaware. The Plan contemplates two possible outcomes: (1) the
sale of substantially all of the Debtors' assets if certain
conditions set forth in the Plan are satisfied and (2) (a) the sale
of the assets associated with the Debtors' Mountain Pass mining
facility in San Bernardino County, California; and (b) the
stand-alone reorganization around the Debtors' other three business
units.
Judge Christopher Sontchi of the U.S. Bankruptcy Court for the
District of Delaware on April 8, 2016, issued a findings of fact,
conclusions of law, and order confirming the Fourth Amended Joint
Plan of Reorganization of Molycorp, Inc., and its debtor
affiliates.
The Plan has yet to be declared effective.
On April 13, 2016, Judge Sontchi directed the appointment of a
Chapter 11 trustee to oversee the operations of Industrial Minerals
LLC, Molycorp Advance Water Technologies LLC, Molycorp Minerals
LLC, PP IV Mountain Pass II Inc., PP IV Mountain Pass Inc., and RCF
Speedwagon Inc. Each of the bankruptcy cases of the companies are
no longer jointly administered with Molycorp's case under Case No.
15-11357.
On May 2, 2016, the Court entered an order in the Molycorp Minerals
Debtors' cases approving the appointment of Paul E. Harner as
chapter 11 trustee for Molycorp Mineral Debtors' bankruptcy
estates.
PACIFIC SUNWEAR: Reports $6.29 Million Net Loss at May 28
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Pacific Sunwear of California, Inc., et al., filed with the U.S.
Securities and Exchange Commission their monthly operating report
for the period from May 1, 2016 to May 28, 2016.
The Debtors' consolidated statement of operations showed a net loss
of $6.29 million on $48.69 million net sales for the reporting
period.
As of May 28, 2016, the Debtors listed consolidated total assets
of $255.59 million, consolidated total liabilities of $295.53
million, and -$39.94 million in consolidated total shareholders'
equity.
At May 28, 2016, the Debtors had total cash receipts of $49.85
million and total disbursements of $49 million.
A copy of the monthly operating report is available at the SEC at:
https://is.gd/Pmxv59
About Pacific Sunwear of California
Founded in 1982 in Newport Beach, California, as a surf shop,
Pacific Sunwear of California, Inc., operates in the teen and
young adult retail sector, selling men's and womens apparel,
accessories, and footwear. The Company went public in 1993
(NASDAQ: PSUN), and peaked with 965 stores in 2006. At present,
the Company has approximately 593 retail locations nationwide
under the names "Pacific Sunwear" and "PacSun," which stores are
principally in mall locations. The Company has 2,000 full-time
workers. Through its ecommerce business, the Company operates an
e-commerce site at http://www.pacsun.com/
On April 7, 2016, Pacific Sunwear of California, Inc., and two
affiliated debtors each filed a voluntary petition for relief
under Chapter 11 of the U.S. Bankruptcy Code in the U.S.
Bankruptcy Court for the District of Delaware. The cases are
jointly administered under Case No. 16-10882 and are pending
before the Honorable Laurie Selber Silverstein.
The Debtors sought Chapter 11 protection with a Chapter 11 plan
that would convert debt into equity.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP, and Klee,
Tuchin, Bogdanoff & Stern LLP as attorneys; FTI Consulting, Inc.,
as financial advisor; Guggenheim Securities, LLC, as investment
banker; and Prime Clerk LLC as claims and noticing agent.
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then-ending.
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Troubled Company Reporter is a daily newsletter co-published
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