The U.S. Bankruptcy Court confirmed Momentive Performance Materials’ (MPM) Joint Chapter 11 Plan of Reorganization and adjudicating certain adversary proceedings. The Court had conditionally confirmed the Plan on August 27, 2014. 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 from bankruptcy, MPM will have eliminated approximately $3 billion in debt from its balance sheet and will have liquidity of approximately $425 million and net debt of approximately $1.2 billion. In a previous order, the Court denied MPM’s requisite first lien noteholders’ motion, pursuant to Bankruptcy Rule 3018(a), to change their votes from rejecting to accepting the Plan. This silicon producer filed for Chapter 11 protection on April 13, 2014, listing $2.7 billion in pre-petition assets.
About Linzee Brown
Linzee Brown is the minority owner and President of New Generation Research, Inc. and has been with the firm since 2002. Linzee is responsible for the overall strategic direction and production of all of New Generation Research’s offerings including Bankruptcy Week, BankruptcyData.com, the Business Bankruptcy Filing Data service, The Bankruptcy Yearbook & Almanac, The Distressed Company Alert and The Turnaround Letter. Prior to joining New Generation Research, Linzee served as Vice President of Direct Marketing for ISM (Boston), a mid-sized strategic marketing company and prior to that he served as a Vice President for Harte Hanks Direct Marketing, one of the country’s largest direct marketing firms.