Solutia, banks agree on funding to exit Chapter 11

ERJ staff report (DS)

St Louis, Missouri -- Solutia Inc. said it has reached an agreement with a consortium of banks to fund Solutia's exit financing package. The company now aims to emerge from Capter 11 bankruptcy on 28 Feb., 2008.

"We are extremely pleased to have reached an agreement on the exit financing package that will result in Solutia's emergence from Chapter 11," said Jeffry Quinn, chairman, president and CEO of Solutia Inc. "Importantly, this agreement enables Solutia to emerge with the plan of reorganisation intact, providing significant recoveries for our stakeholders and providing a firm foundation for Solutia's future success."

Previously the banks had withdrawn an offer to provide funding, based on adverse financial market

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Press release from Solutia