S.D.N.Y Affirms MPM Silicones' "Prime Plus" Formula for Cramdown Interest Rates, Likely Harming Creditor Recoveries

Pratt's Journal of Bankruptcy Law published a Chapman Client Alert discussing the United States District Court for the Southern District of New York's decision in In MPM Silicones, LLC affirming the Bankruptcy Court’s decision to establish the “prime plus” formula as the appropriate interest rate required in connection with new notes issued to secured creditors under a cramdown plan of reorganization in the Southern District of New York. This article is reprinted with permission.

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