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Reuters: U.S. Judge Rules Momentive Creditors Cannot Change Votes

September 10, 2014, 07:31 AM
Filed Under: Bankruptcy

Reuters reports a U.S. bankruptcy court judge ruled on Tuesday that senior bondholders of bankrupt Momentive Perfomance Materials cannot change their votes to accept the quartz and silicone maker's proposed restructuring.

Knocking down what he viewed as an effort to avoid a less desirable payout, Judge Robert Drain of federal bankruptcy court in White Plains, NY, denied the bondholders' request to switch their votes according to the Reuters story.

Waterford, New York-based Momentive, owned by Apollo Global Management, filed for protection under Chapter 11 bankruptcy in April with a contentious proposal to cut $3 billion in debt and transfer control to a class of junior bondholders that also included Apollo.

The Reuters article notes that the offer by senior bondholders to change their votes met with resistance from Momentive, which viewed the shift as an effort to avoid repayment in the form of a long-term note, rather than cash.

Led by Wilmington Trust and BOK Financial Corp, the bondholders were due to receive notes as a result of their opposition to Momentive's restructuring plan.

To view the entire Reuters story, click here.

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