Some senior lenders to Apollo Global Management LLC’s Momentive Performance Materials Inc. said that they want to change their vote on the chemical company’s bankruptcy plan to “yes” so that they can collect a cash payment, Bloomberg reported yesterday. Momentive Performance had offered the senior lenders full repayment in cash, but no premium to compensate for early redemption of their notes if they voted in favor of the plan. If they voted against it, they were entitled to replacement liens, not cash. This week, some of those lenders said that they were willing to drop their opposition after Hon. Robert Drain criticized them for not taking the cash. The judge gave them a day to negotiate with the Waterford, N.Y.-based company, which makes silicone and quartz products. After they returned to court without a settlement, Judge Drain ruled that the lenders had no enforceable right to the premium and gave the reorganization plan his conditional approval, saying that Momentive Performance had to raise the rates on some of the debt being issued under the new plan. Momentive Performance has set Sept. 9 for the hearing on plan confirmation. The case is In re Momentive Performance Materials Inc., 14-bk-22503, U.S. Bankruptcy Court, Southern District of New York (White Plains).
