Momentive Nears Bankruptcy Filing

Momentive Performance Materials is negotiating with creditors and nearing possible bankruptcy, according to a filing with the Securities & Exchange Commission. The document says the talks are about ways to modify the firm’s capital structure and reduce its debt. Momentive notes that a Chapter 11 bankruptcy filing could “provide the most expeditious manner in which to effect a plan of reorganization.” Momentive was formed in 2006 when the private equity firm Apollo Global Management acquired GE Silicones. The company lost $465 million on $2.4 billion in sales last year, and it has long-term debt of about $3.2 billion. Momentive and its sister company, Momentive Specialty Chemicals, canceled a combined initial public offering of stock in late 2012.