|[August 27, 2014]
Silicones and Quartz Producer Momentive Performance Materials Inc. Prepares to Emerge from Chapter 11
WATERFORD, N.Y. --(Business Wire)--
Momentive Performance Materials Inc. ("MPM" or "the Company"), a global
leader in the development and manufacture of silicones and products
derived from quartz and specialty ceramics, today announced that the
U.S. Bankruptcy Court for the Southern District of New York indicated at
a hearing on August 26, 2014 that it will enter an order confirming the
Company's restructuring plan once certain modifications have been made
to the plan. MPM expects to complete the modifications shortly and to
formally emerge from Chapter 11 within the next few weeks.
"Now that the court has indicated that it will confirm our plan, the
path is clear for MPM to emerge from Chapter 11 as a stronger and more
competitive company," said Craig O. Morrison, Chairman, President and
CEO of MPM. "Our restructured balance sheet better aligns MPM with
current industry dynamics and will provide us with additional cash flow
that, among other things, can be invested in growth opportunities,
research and development and technology enhancements."
The key terms of the plan include a $600 million rights offering, which
will provide a significant equity infusion to the Company and 100%
recovery to trade creditors and other general unsecured creditors. Upon
emergence, MPM will have eliminated approximately $3 billion of debt
from its balance sheet, and will have liquidity of approximately $425
million and net debt of approximately $1.2 billion.
Mr. Morrison continued, "I want to thank our lenders, including the
financial institutions that have provided us with debtor-in-possession
and exit financing, for their invaluable support of our company. I also
want to express my gratitude to our customers, suppliers and employees
for their unwavering commitment to MPM, which has allowed us to operate
without interruption throughout this process and to fulfill our
obligations worldwide. MPM has a bright future ahead of it, and we look
forward to sharing our future success with all of our stakeholders."
Additional information is available at www.momentive.com/mpmrestructuring.
Suppliers with questions can contact a dedicated vendor hotline,
toll-free at 844-812-8197 or locally at 614-225-4200, or via email at email@example.com.
Court filings and information about the claims process are available on
a dedicated website administered by MPM's claims agent, Kurtzman Carson
Consultants LLC, at www.kccllc.net/mpm,
or by calling 888-249-2792 (310-751-2607 for international calls).
Willkie Farr & Gallagher LLP is serving as legal counsel, Moelis &
Company is serving as financial advisor, and AlixPartners, LLP is
serving as restructuring advisor to MPM.
About Momentive Performance Materials Inc.
Momentive Performance Materials Inc. is a global leader in silicones and
advanced materials, with a 75-year heritage of being first to market
with performance applications for major industries that support and
improve everyday life. The Company delivers science-based solutions, by
linking custom technology platforms to opportunities for customers.
Momentive Performance Materials Inc. is an indirect wholly owned
subsidiary of Momentive Performance Materials Holdings LLC.
Forward-Looking and Cautionary Statements
Certain statements in this press release are forward-looking statements
within the meaning of and made pursuant to the safe harbor provisions of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. In addition, our
management may from time to time make oral forward-looking statements.
All statements, other than statements of historical facts, are
forward-looking statements. Forward-looking statements may be identified
by the words "believe," "expect," "anticipate," "project," "plan,"
"estimate," "may," "will," "could," "should," "seek" or "intend" and
similar expressions. Forward-looking statements reflect our current
expectations and assumptions regarding our business, the economy and
other future events and conditions and are based on currently available
financial, economic and competitive data and our current business plans.
Actual results could vary materially depending on risks and
uncertainties that may affect our operations, markets, services, prices
and other factors as discussed in the Risk Factors section of our
filings with the Securities and Exchange Commission (the "SEC (News - Alert)") and
those described in filings made by the Company with the U.S. Bankruptcy
Court for the Southern District of New York. While we believe our
assumptions are reasonable, we caution you against relying on any
forward-looking statements as it is very difficult to predict the impact
of known factors, and it is impossible for us to anticipate all factors
that could affect our actual results. Important factors that could cause
actual results to differ materially from those in the forward-looking
statements include, but are not limited to: the ability of the Company
to continue as a going concern, the Company's ability to obtain
Bankruptcy Court approval with respect to motions in the Chapter 11
cases, the ability of the Company and its subsidiaries to successfully
effectuate a plan of reorganization with respect to Chapter 11 cases,
the Company's ability to negotiate definitive agreements and obtain
financing, the potential adverse effects of Chapter 11 proceedings on
the Company's liquidity, results of operations, brand or business
prospects, the ability to execute the Company's businesses and
restructuring plan, increased legal costs related to the Bankruptcy
filing and other potential litigation, the Company's ability to maintain
contracts that are critical to its operations and to maintain normal
terms with customers, suppliers and service providers, the Company's
ability to maintain product reliability and quality and to retain key
executives, managers and employees, and the ability of the Company's
non-U.S. subsidiaries to continue to operate their businesses in the
normal course, a weakening of global economic and financial conditions,
interruptions in the supply of or increased cost of raw materials,
changes in governmental regulations and related compliance and
litigation costs, difficulties with the realization of cost savings in
connection with our strategic initiatives, including transactions with
our affiliate, Momentive Specialty Chemicals Inc., pricing actions by
our competitors that could affect our operating margins, and other
unknown factors. All forward-looking statements are expressly qualified
in their entirety by this cautionary notice. The forward-looking
statements made by us speak only as of the date on which they are made.
Factors or events that could cause our actual results to differ may
emerge from time to time. We undertake no obligation to publicly update
or revise any forward-looking statement as a result of new information,
future events or otherwise, except as otherwise required by law.
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