Solutia ready to exit Chapter 11 bankruptcy

St Louis, Missouri -†Solutia Inc. said it has secured the support of all of the major constituents in its Chapter 11 cases for a consensual plan of reorganisation. The company will reveal details of the plan in the next few days and on 10 October, the company is expected to seek formal approval for the settlement in court. Once approved, the disclosure statement will be sent to Solutia's creditors and equity interest holders for voting purposes. Following the voting process, the court will hold a hearing to approve or "confirm" the plan.

"I am extremely pleased to announce today that we have reached a comprehensive settlement with all of the major constituents in our bankruptcy case that will form the basis for a revised consensual plan of reorganization that will be filed within the next few days," said Jeffry Quinn, chairman, president and chief executive officer of Solutia Inc. "The revised plan will position Solutia to emerge from bankruptcy by the end of this year as a financially healthy organisation well-positioned to create significant value for its stakeholders."

"The revised plan will provide for $250 million of new investment in reorganised Solutia. Importantly, it also will provide for a resolution of all the litigation between the settling parties including a potential appeal by our noteholders, the adversary proceeding filed by our current equity holders against Monsanto and Pharmacia, and related objections to the Monsanto and Pharmacia claims."

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Press release from Solutia