JUDGE REFUSES MOLYCORP'S LOAN REQUEST

Molycorp Inc. failed to get approval from a U.S. Bankruptcy judge on Friday to borrow about US$44 million at the rare earth producer’s first bankruptcy hearing. Judge Christopher Sontchi agreed with the objection by an affiliate of Oaktree Capital Management that Molycorp could not justify its need for the money, which would deepen the company’s insolvency. The company will discuss with its creditors how to structure the loan and will return to court on Thursday at 10 a.m., according to Sontchi’s chambers. Molycorp, which filed for bankruptcy on Thursday, sought the money for its operations and to signal to customers and employees that the company would meet its commitments. Oaktree, which had loaned the company about $250 million in September, argued Molycorp was essentially two businesses, a profitable developer and distributor known as Neo and the unprofitable Mountain Pass mining operation in California.