By Patrick Fitzgerald and Emily Glazer 

Momentive Performance Materials Inc., a silicone and quartz producer owned by Apollo Global Management LLC, filed for Chapter 11 bankruptcy Sunday on the eve of a $60 million interest payment it couldn't afford to make.

The Chapter 11 filing in U.S. Bankruptcy Court in White Plains, N.Y., comes after the company had been in negotiations with creditors about restructuring its unmanageable debt load.

Chief Executive Craig O. Morrison said in a statement Sunday night that the company's "prenegotiated" plan with key creditors will allow it to slash more than $3 billion in debt off the company's books.

Earlier this month, Momentive said it was in active discussions with creditors about restructuring its debt.

In court filings, Momentive listed four separate groups of bondholders owed about $2.5 billion as its largest unsecured creditors. Among those creditors are Oaktree Capital Management LLC, GSO Capital Partners and Third Avenue Management.

Apollo's $3.8 billion buyout of New York-based Momentive in 2006 saddled the company with billions of dollars in debt ahead of a global financial crisis and subsequent recession.

Apollo, which bought Momentive from General Electric Co., is planning to retain a stake in the company, according to people familiar with the matter.

Momentive produces silicones, which are often used in coatings and adhesive for products including televisions, computer screens and hand-held devices.

The company intends to remain open during its restructuring and has lined up $570 million in bankruptcy financing from J.P. Morgan Securities LLC to pay its suppliers and employees during the bankruptcy case.

Momentive's Chapter 11 restructuring, which doesn't include Momentive Specialty Chemicals Inc., is being handled by the law firm of Willkie Farr & Gallagher LLP. The company's restructuring adviser is AlixPartners and its investment bank is Moelis &Co.

Write to Patrick Fitzgerald at patrick.fitzgerald@wsj.com and Emily Glazer at emily.glazer@wsj.com

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