Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Momentive Performance preparing for filing protection under chapter 11
Author: Joel R. Glucksman
Date: April 17, 2014
Key Contacts
Back
Momentive Performance Materials, Inc. said on April 1 that it is meeting with stakeholders to discuss the restructuring of its debt before it files for protection under Chapter 11 of the bankruptcy law, according to Reuters. The silicon and quartz producer held total liabilities of $4.14 billion as of Sept. 30, the company said in a filing with the U.S. Securities and Exchanges Commission. On March 31, Momentive Performance said that it was unable to file its annual report for the period ending Dec. 31.
The company expects to continue business after the filing, but does not plan to make a $60 million interest payment on its debt due mid-April, according to The Wall Street Journal. Momentive Performance was purchased by Apollo Global Management LLC in a $3.8 billion leveraged buyout in 2006 that left the company saddled with more debt. The subsequent recession, which caused an oversupply in the silicon industry, also contributed to the company’s financial woes.
Momentive Performance’s affiliate, Momentive Specialty Chemicals, Inc., isn’t experiencing financial difficulties, and will not be a part of the filing, the company said in an April 1 statement, according to the news source.
This Chapter 11 filing would be the largest such case so far in 2014, marking one of the biggest failures of a leveraged buyout in recent history, the Journal explained. A number of pre-recession buyouts led to strong returns for their private-equity owners, others have experienced real financial troubles. Sources told the news source that Apollo, which is also a creditor, plans to retain a stake in the company. Along with some other creditors, Apollo will be pumping $550 million to $600 million into Momentive Performance. The restructuring is anticipated to reduce Momentive’s debt to about $1.3 billion.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Author: George McGowan
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.