ERJ staff report (DS)
St Louis, Missouri -- Solutia Inc said it will not now emerge from Chapter 11 bankruptcy on 28 Jan as previously announced. The company announced delays due to problems with arranging credit, given the global financial crisis.
Solutia said the lead arrangers of Solutia's exit financing have informed Solutia that, in their view, due to continuing conditions in the credit markets, they have not been able to complete the exit financing they committed to on October 25, 2007 . This exit financing consists of a $1200 million senior secured term loan facility, a $400 million senior secured asset-based revolving credit facility and $400 million aggregate principal amount of senior unsecured notes.
Solutia said it believes that the lead arrangers are required to fund their commitments on or before February 29, 2008 .
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Press release from Solutia