NEW YORK (TheStreet) --Shares of Molycorp Inc. (MCP) are down -8.51% to $1.72 at the beginning of trading this morning continuing a decline the stock began on Wednesday, following speculation the company could go bankrupt, Motley Fool reports.
Apollo Global Management (APO) is adding to its Molycorp bond holdings, which would position the investment firm to take control of the company in the event the rare-earth miner sought to restructure its $1.5 billion in debt, Bloomberg reported.
In order for Apollo to gain control of Molycorp it will have to go bankrupt, which Motley Fool says is a real possibility as the company's operations continue to "burn through" its cash.
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Separately, TheStreet Ratings team rates MOLYCORP INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate MOLYCORP INC (MCP) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, weak operating cash flow and generally disappointing historical performance in the stock itself."