Molycorp, along with its affiliated debtors has filed a joint plan of reorganization with the U.S. Bankruptcy Court for the District of Delaware that proposes an emergence from Chapter 11 through either a stand-alone reorganization that would substantially de-lever its balance sheet or a sale of substantially all of its assets.

The plan has proposed an exit of Chapter 11 through a stand-alone reorganization or a sale of substantially all of its assets, the company said in statement. 

The Greenwood, Colorado-based company said it has the backing of its largest pre-petition secured creditor and its post-petition lender and investment funds managed by Oaktree Capital Management.

Molycorp said it has begun reaching out to prospective buyers.

The company filed for Chapter 11 bankruptcy protection in June, along with its North American subsidiaries to restructure $1.7 billion of debt in its U.S. and Canadian operations.

Rare earths gained global attention in 2010, when China clamped down on exports. Sensing an opportunity, Molycorp started expanding its Mountain Pass rare earths mine in California. But China subsequently eased export rules, causing prices to fall.