Apollo Exits Hexion Investment With Creditor-Backed Bankruptcy

Apollo Global Management ended its nearly 15-year bet on Hexion Inc. with the specialty chemicals company filing for bankruptcy.

Hexion, created in 2005 through a tie-up of Apollo-owned firms including Borden Chemical Inc. and Resolution Performance Products LLC, sought Chapter 11 protection in Delaware with a creditor-supported plan to cut at least $2 billion from its $3.8 billion debt load. Its first-lien bonds due February 2022 and April 2020 led high-yield gains April 1.

Creditors including Cyrus Capital Partners, Monarch Alternative Capital, GoldenTree Asset Management, GSO Capital Partners, Brigade Capital Management and Davidson Kempner Capital Management agreed to a debt-for-equity ...