October 14, 2016
Curtis Acted as Conflicts Counsel to Wilmington Trust in Chapter 11 Cases of Momentive Performance Materials
Curtis is serving as Conflicts Counsel to Wilmington Trust, N.A. (“Wilmington Trust”) in its capacity as Successor Trustee under certain 10% Senior Secured Notes (the “1.5 Lien Notes”) issued by Debtor Momentive Performance Materials Inc. (“Momentive”) in the Chapter 11 cases of MPM Silicones, LLC in the United States Bankruptcy Court for the Southern District of New York before Judge Robert D. Drain.
In its capacity as Conflicts Counsel, Curtis successfully prosecuted an objection to third-party releases contained in MPM Silicones' proposed plan of reorganization, obtaining a carve-out from the releases of intercreditor claims by the 1.5 Lien Notes Trustee against junior lenders for violating an intercreditor agreement. Curtis is also prosecuting the related intercreditor breach of contract lawsuit against junior lenders seeking to enforce the intercreditor agreement. That action is currently on appeal in the District Court for the Southern District of New York.
The Momentive matter is significant and precedential in a number of ways, including presenting the issues of whether junior lenders can recover equity in a reorganized debtor before senior lenders are paid in full without violating the priority waterfall in an intercreditor agreement.
The Curtis team working on this matter includes Restructuring and Insolvency Partner Steven J. Reisman, Restructuring and Insolvency Litigation Partner Theresa A. Foudy, Restructuring and Insolvency Counsel James V. Drew, Litigation Counsel Gabriel Hertzberg and Litigation Associate Michael P. Jones.