Apollo Global Management LLC’s Momentive Performance Materials Inc. yesterday won court approval of its bankruptcy plan, which cuts its debt to less than $1.3 billion from $4 billion, Bloomberg News reported yesterday. U.S. Bankruptcy Judge Robert Drain in White Plains, N.Y., had said that he would approve the plan if the chemical company boosted the interest rate on notes in the reorganized company. Bonds had been trading at record volumes after he gave his conditional approval Aug. 26. The plan was negotiated by Momentive Performance, Apollo and a committee representing holders of second-lien secured debt. Most of the reorganized company’s stock will go to holders of $1.34 billion in 9 percent second-lien notes. Momentive Performance listed $2.69 billion in assets and $4.17 billion in debt in its April chapter 11 filing. The case is In re Momentive Performance Materials Inc., 14-bk-22503, U.S. Bankruptcy Court (S.D.N.Y.) (White Plains).
