Volume 42, Issue 11 - November 2007
Solutia to Emerge From Bankruptcy
Solutia Inc. in St. Louis announced in late September that it has secured the support of all of the major constituents in its Chapter 11 cases for a consensual plan of reorganization.
The company originally filed its plan of reorganization and disclosure statement in early 2006. The reorganization was undertaken to provide the company with relief from the legacy liabilities it was required to assume when it spun off from Pharmacia (formerly known as Monsanto) in 1997. These legacy liabilities include retiree medical, life insurance and disability benefits for individuals who retired or became disabled prior to the Solutia spinoff. Also included are environmental remediation costs related to activities of the chemicals business of Pharmacia that occurred prior to the spinoff and toxic tort litigation costs relating to chemical exposure associated with the activities of Pharmacia that occurred prior to the spinoff.
“The revised plan will position Solutia to emerge from bankruptcy by the end of this year as a financially healthy organization well-positioned to create significant value for its stakeholders,” says Jeffry N. Quinn, chairperson, president and chief executive officer of Solutia.