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Momentive Performance Materials to Emerge from Chapter 11

August 28, 2014, 07:13 AM
Filed Under: Bankruptcy

Momentive Performance Materials Inc., a global leader in the development and manufacture of silicones and products derived from quartz and specialty ceramics, announced that the U.S. Bankruptcy Court for the Southern District of New York indicated at a hearing on August 26, 2014 that it will enter an order confirming the Company’s restructuring plan once certain modifications have been made to the plan. MPM expects to complete the modifications shortly and to formally emerge from Chapter 11 within the next few weeks. AlixPartners, LLP is serving as restructuring advisor to MPM.

The key terms of the plan include a $600 million rights offering, which will provide a significant equity infusion to the Company and 100% recovery to trade creditors and other general unsecured creditors. Upon emergence, MPM will have eliminated approximately $3 billion of debt from its balance sheet, and will have liquidity of approximately $425 million and net debt of approximately $1.2 billion.

Willkie Farr & Gallagher LLP is serving as legal counsel and Moelis & Company is serving as financial advisor.

Momentive Performance Materials Inc. is a global leader in silicones and advanced materials, with a 75-year heritage of being first to market with performance applications for major industries that support and improve everyday life. The company delivers science-based solutions, by linking custom technology platforms to opportunities for customers. Momentive Performance Materials Inc. is an indirect wholly owned subsidiary of Momentive Performance Materials Holdings LLC.

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