Report: Molycorp planning to file for Chapter 11 bankruptcy

Molycorp Inc., the only U.S. miner of rare-earths elements, plans to seek Chapter 11 bankruptcy as soon as this month, the Wall Street Journal reported for a story on its website.

The company operates a mine at Mountain Pass, Calif., near the Nevada border. Many of its workers commute from Las Vegas.

The Journal, citing people familiar with the situation, reported the Greenwood Village, Colo.-based company is finishing a plan to trim $1.7 billion in debt in a deal that would involve senior bondholders swapping some or all of their debt for a stake in the company.

Molycorp is also weighing an offer from the senior bondholders for a loan that would fund its operations during bankruptcy, the Journal reported, citing its sources.

Rare-earth elements improve the strength and performance of magnets critical to high-tech products that range from cell phones to smart bombs to hybrid vehicles.

Shares of Molycorp, which peaked at nearly $80 in 2011, fell 5.9 cents, or 14.38 percent, to 35 cents. They slumped further in extended-hours trading.