subordination to the Second-Lien Notes. In re MPM Silicones, LLC, 2014 Bankr. LEXIS 3926, 2014 WL 4436335, at *2 *11. It held the plan was fair to the Senior-Lien Notes holders because the 2012 Indentures did not require payment of the make-whole premium in the bankruptcy context and because the interest rate on th

are Senior Indebtedness. The judgment of the district court on that issue is, therefore, affirmed. p798] B As a consequence of rejecting the Plan, the Senior-Lien Notes holders received replacement notes which pay out their claim over time. [HN6] The Code permits debtors to make such "deferred cash payments" to sec

of the formula rate.,: We arrive at no conclusion with regard to the outcome of this inquiry. 12 We acknowledge that the lower courts grappled with the Senior-Lien Notes holders' evidence regarding MPM's quoted exit financing, and made express their view that the rate produced by that process may not in fact have bee

ill materialize. On remand, the bankruptcy court will only be called on to re-evaluate the interest to be received on the replacement notes held by the Senior-Lien Notes holders. The Debtors acknowledge that this might require, at most, $32 million of additional annual payments over seven years. 15-1682 Br. of Appel

make-whole premium. 3. The lower court erred in the process it used to calculate the interest rate applicable to the replacement notes received by the Senior-Lien Notes holders. On remand, the bankruptcy court should assess whether an efficient market rate can be r*391 ascertained, and. if so, apply it to the replac