A bankruptcy court judge on Friday approved a $570 million financing package to get Momentive Performance Materials through bankruptcy, over the objections of unsecured creditors who say the deal will threaten their recoveries, Reuters reported yesterday. Momentive, the maker of silicone and quartz products that is owned by private equity group Apollo Global Management LLC, filed for chapter 11 protection in April with a prearranged restructuring that had the support of key stakeholders. The plan, which still needs court approval, includes a $600 million rights offering and $1.3 billion in exit loans from JPMorgan Chase & Co. To get Momentive through chapter 11, JPMorgan also arranged financing in the form of a $300 million loan and a $270 million credit facility. The bulk of that package had already been approved by Bankruptcy Judge Robert Drain, but unsecured creditors, including Aurelius Capital Management, objected this month to the approval of the rest.
