April 13 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
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
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