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Momentive Performance Materials Plan Confirmed

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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.

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