Momentive Performance Materials, the quartz and silicone maker owned by Apollo Global Management, will embark Monday on a week of hotly contested hearings seeking court approval of a plan to cut $3 billion in debt and exit bankruptcy, Reuters reported today. The Waterford, N.Y.-based company filed for chapter 11 protection in April with an agreement to transfer control to a class of bondholders, but most other creditors have vigorously opposed the plan. Bankruptcy Judge Robert Drain has set aside four days this week — Monday, Tuesday, Thursday and Friday — to hash out the disputes in his courtroom and decide whether to approve the plan. The deal is premised on a $1.3 billion loan from JPMorgan Chase & Co. and a $600 million rights offering available to holders of second-lien bonds, who would walk away with Momentive's equity.
