WATERFORD, N.Y.—Momentive Performance Materials Inc., a maker of silicones and quartz products owned by Leon Black's Apollo Global Management L.L.C., won court approval to put the rough terms of its bankruptcy plan to a creditor vote.
U.S. Bankruptcy Judge Robert Drain approved the disclosure statement explaining the reorganization on June 19.
Momentive had sought to resolve three creditor lawsuits on an accelerated schedule, leading up to a five-day trial that would confirm a plan by Aug. 22. The judge said there was no need to hold up a vote just for the lawsuits, while suggesting that a trial on final plan approval be delayed to Sept. 14.
“It doesn't affect the company's business, it affects a class of creditors, and it is a sophisticated class,” Drain said at a hearing in White Plains, New York.
Talks with the company's official creditors' committee led to a revised plan that was filed on June 18, Matthew Feldman, a lawyer for Momentive, told Drain. The plan before the court today cut $4 billion of debt to as little as $1.3 billion.
Drain declined to approve a creditors' agreement supporting a proposed $600 million rights offering until a $30 million fee is reduced.
The judge also told creditors today to take more time to resolve legal disputes. The company had sought to resolve them all prior to Aug. 14, which Drain said was too soon. He said he will impose a timeline by June 23 if creditors can't agree on one themselves.