Momentive inks support agreement amendment tied to claim transfers

By Caroline Salls

Pittsburgh, April 17 - Momentive Performance Materials Inc. entered into an amendment to its restructuring support agreement with affiliates of Apollo Global Management, LLC and some holders of Momentive's 9% second-priority springing lien notes due 2021 and 9½% second-priority springing lien notes due 2021, according to an 8-K filed Thursday with the Securities and Exchange Commission.

Under the amendment, if any plan support party transfers any claims to a "qualified marketmaker," the marketmaker is not required to become a consenting noteholder if the marketmaker subsequently transfers the claims to a party that is or becomes a consenting noteholder.

In addition, if a consenting noteholder is acting solely in its capacity as a qualified marketmaker, it may transfer claims that it acquires from a party that is not a consenting noteholder to another party that is not a consenting noteholder without the requirement that the transferee become a consenting noteholder.

As previously reported, the key terms of the support agreement include a $600 million rights offering, which will provide a significant equity infusion, along with the securing of commitments for $1.3 billion of exit financing.

Momentive, a silicones and advanced materials company based in Albany, N.Y., filed bankruptcy on April 13 in the U.S. Bankruptcy Court for the Southern District of New York. The Chapter 11 case number is 14-22503.

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