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Bloomberg: Momentive Senior Lenders Seek to Change Vote on Plan

August 29, 2014, 08:08 AM
Filed Under: Bankruptcy

According to an article from Bloomberg, some senior lenders to Apollo Global Management LLC’s (APO) Momentive Performance Materials Inc. said they want to change their vote on the chemical company’s bankruptcy plan to “yes” so they can collect a cash payment.

The Bloomberg article notes that Momentive Performance had offered the senior lenders full repayment in cash but no premium to compensate for early redemption of their notes if they voted in favor of the plan. If they voted against it, they were entitled to replacement liens, not cash.

This week, some of those lenders said they were willing to drop their opposition after U.S. Bankruptcy Judge Robert Drain criticized them for not taking the cash. After they returned to court without a settlement, Drain ruled that the lenders had no enforceable right to the premium and gave the reorganization plan his conditional approval, saying Momentive Performance had to raise the rates on some of the debt being issued under the new plan.

To view the entire Bloomberg article, click here.

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