April 8, 2015

Turnaround & Workouts magazine recently recognized the successful restructuring of Momentive Performance Materials on its “Special Report – Successful Restructurings 2014.”  On October 24, 2014, Momentive Performance Materials, Inc. and its affiliates (MPM) successfully consummated its prenegotiated plan of reorganization and exited from bankruptcy just six months after its bankruptcy filing. Willkie is recognized for having led the complex representation of MPM, a maker of silicone and quartz products, and 11 of its affiliates in connection with their chapter 11 bankruptcy cases before the Honorable Robert D. Drain in the United States Bankruptcy Court for the Southern District of New York.

T&W highlights that “Momentive’s financial restructuring eliminated approximately $3 billion from its balance sheet, allowing it to emerge from chapter 11 with liquidity of approximately $360 million and net debt of approximately $1.2 billion.”  T&W also underscores that “most of the equity of the reorganized company will be distributed to holders of $1.34 billion in second lien notes,” and as a result Momentive “will be able to remain a viable competitor.”  The profile also discusses the “major implications” of this restructuring on other chapter 11 cases, noting that the court’s “ruling on make-whole provisions changes the way indentures need to be written,” and that its ruling on cram downs “has significant ramifications for secured lenders, opening additional strategies for debtors in negotiations.”

Bankruptcy partner Matthew Feldman and Rachel Strickland are recognized for leading Willkie’s multidisciplinary effort in this matter. 

Read Willkie’s October 27, 2014 announcement.

Matthew A. Feldman Chairman Business Reorganization & Restructuring
Rachel C. Strickland Partner Business Reorganization & Restructuring