Momentive Performance Materials Inc., a silicone and quartz producer
owned by Apollo Global Management LLC, filed for Chapter 11 bankruptcy
Sunday on the eve of a $60 million interest payment it couldn't afford
to make.
The Chapter 11 filing in U.S. Bankruptcy Court in White Plains, N.Y.,
comes after the company had been in negotiations with creditors about
restructuring its unmanageable debt load.
Chief Executive Craig O. Morrison said in a statement Sunday night that
the company's "prenegotiated" plan with key creditors will allow it to
slash more than $3 billion in debt off the company's books.
Earlier this month, Momentive said it was in active discussions with creditors about restructuring its debt.
In court filings, Momentive listed four separate groups of bondholders
owed about $2.5 billion as its largest unsecured creditors. Among those
creditors are Oaktree Capital Management LLC, GSO Capital Partners and Third Avenue Management.
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