Momentive Performance Materials files for bankruptcy
April 13 (Reuters) - Silicone and quartz producer Momentive Performance Materials Inc, owned by Apollo Global Management LLC , on Sunday filed for Chapter 11 bankruptcy protection as part of a "restructuring support agreement" with some of its creditors.
Momentive listed assets and liabilities of above $1 billion, according to its bankruptcy filing.
Momentive said the restructuring plan is to reduce long-term debt and enhance liquidity.
The restructuring includes a $600 million rights offering, which will provide the company a significant equity infusion, along with exit financing commitments of $1.3 billion, it said.
"We intend to move quickly to implement our pre-negotiated balance sheet restructuring plan, which will eliminate more than $3 billion of debt from MPM's balance sheet and result in post-emergence liquidity of more than $300 million and net debt of approximately $1.2 billion," Chief Executive Craig Morrison said in a statement.
The company said it has received $570 million in debtor-in-possession financing led by J.P. Morgan Securities LLC.
The case is in the U.S. Bankruptcy Court, Southern District of New York, Case No. 14-22508. (Reporting by Arnab Sen in Bangalore; Editing by Gopakumar Warrier)
Trending On Reuters
We are living longer but not creating financial plans to keep pace. Advisers give tips on how to make sure you don’t outlive your money. Video