A federal judge has upheld a decision by a silicone and quartz producer backed by Apollo Global Management to forgo $200 million in so-called make-whole payments, or premiums, to its bondholders, Dow Jones Daily Bankruptcy Review reported today. U.S. District Judge Vincent Briccetti on Monday rejected an appeal from bondholders unhappy with a bankruptcy court's approval of Momentive Performance Materials Inc.'s chapter 11 plan, which did not include the make-whole premiums. In a 28-page decision, Judge Briccetti said that the terms of Momentive's bond indentures didn't "clearly and unambiguously" provide for make-whole payments when the company filed for chapter 11 protection. Read more. (Subscription required.)
For further analysis of the issues surrounding the Momentive case, be sure to attend next week’s ABI New York City Bankruptcy Conference that will feature a session titled “Momentive Deconstructed.” For more information and to register, please click here.
