Amid competition from China and the declining demand for rare earth elements, Molycorp Inc (OTCMKTS:MCPIQ) has gone to court to file for protection against Chapter 11 bankruptcy. The only U.S. producer of the elements used in high-tech communications, transportation, and industrial products is facing problems that have resulted from falling prices for the metals it produces.

Also, its problems with the expansion of a mine in California due to a cash shortage and its shares have toppled. Alongside its U.S. and Canada subsidiaries, the Greenwood Village, Colo., the company struck a deal with its creditors to have its $1.7 billion debt structured.

Part of the deal included $225 million that will go to its Mountain Pass mine in the Mojave Desert to facilitate the continuity of its operations even though the employees have been running normal schedules.

In the fourth quarter of 2014, Molycorp says that Mountain Pass production almost doubled from the previous quarter. This included the production of praseodymium and neodymium for use in magnets and lanthanum.

Despite all the financial hardships the Company is experiencing, it is very optimistic that it will withdraw from bankruptcy before the year ends. Also New York Stock Exchange should delist its shares in the next nine days and transfer and include them back to the over-the-counter exchange.

Since the beginning of 2015, the Company has lost close to a 59% of its shares. Apparently, the Company was once a supplier of the majority’s world’s rare earth elements. On the other hand, it scooped a lot of benefits from a Chinese limited-export policy, which is the world’s largest rare earth producer.

However, in the recent past the Asian superpower has lessened its restrictions having released larger rare earth supplies into the global marketplace.

With the latest technological advancement, various workarounds have been discovered by electronics designers and the rare earth is no longer dependent on the minerals. Molycorp Inc (OTCMKTS:MCPIQ) is now in waiting and looking forward that all will fall into place as they have planned.