Momentive Performance Materials Inc. (MPM or the Company) announced that the U.S. Bankruptcy Court for the Southern District of New York has granted MPM final authorization to access the full amount its $570 million in committed debtor-in-possession ("DIP") financing. The Company had previously received interim approval from the Court to access up to $430 million of the DIP financing. The Court also granted final approval for several other orders that, among other things, enable MPM to continue supporting its employees and customers.
"With the Court's final approval of our $570 million DIP financing, MPM now has access to $140 million of additional liquidity to supplement cash from operations as needed," said Craig O. Morrison, Chairman, President and CEO of MPM. "Together, these resources provide MPM with the financial flexibility to continue operating its business in the normal course as it completes its balance sheet restructuring. Throughout this important process we remain fully committed to providing our customers with the high-quality products and services they expect from MPM, and deeply value their ongoing partnership and support."
As previously announced, on April 13, 2014, MPM reached an agreement with certain of its key stakeholders regarding the terms of a balance sheet restructuring plan that will strengthen its financial position by eliminating more than $3 billion of debt from MPM's balance sheet and enhancing liquidity. To implement this "pre-negotiated" plan, MPM and its U.S. subsidiaries voluntarily filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code. MPM's operations outside the U.S. are not included in the Chapter 11 proceedings. The restructuring relates solely to MPM and not to Momentive Specialty Chemicals Inc. (MSC), which has a fully independent debt capital structure and a separate and strong balance sheet.
Momentive Performance Materials Inc. is a global leader in silicones and advanced materials, with a 70-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.