Momentive Performance Materials files for bankruptcy

April 13 Sun Apr 13, 2014 11:07pm EDT

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)

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