Financial Times FT.com

Apollo company halts cash payouts

By Henny Sender in New York

Published: June 3 2008 00:02 | Last updated: June 3 2008 00:02

A fourth company owned by private equity firm Apollo Management has exercised its option to suspend cash payments on part of its debt, taking advantage of one of the most controversial financing techniques of the leveraged buy-out boom.

The company, Momentive Performance Materials, the former GE Advanced Materials business, employed a so-called payment-in-kind – or PIK – feature.

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