Abstract
After getting close to violating its loan covenants in 2009, Momentive took a variety of actions over several months to restructure its debt. In particular, in May of 2009, Momentive had exchanged a fraction of its outstanding notes. In November of 2009, it proposed an amendment that sought to extend the maturity on the loan used to finance the Momentive buyout and allow issuance of senior secured notes. The case is set up from the perspective of a hedge fund that holds a fraction of Momentive's syndicated loan. The case serves as a vehicle for discussing contractual differences between public and private debt and challenges in its restructuring.
Keywords: Restructuring;
Financial Crisis;
Borrowing and Debt;
Private Equity;
Financing and Loans;
Citation:
Ivashina, Victoria, and David S. Scharfstein. "Momentive Performance Materials, Inc." Harvard Business School Case 210-081, February 2012. (Revised from original June 2010 version.)