Judge Grants Solutia 2-Week Extension for Bankrupt
St. Louis, MO, April 10, 2006--A federal bankruptcy judge has granted Solutia Inc., a two-week extension of its exclusive right to file a Chapter 11 plan, allowing the company to head off the possibility of a group of noteholders filing a rival plan.
Solutia and J.P. Morgan Chase, as trustee for a group of noteholders, are involved in a separate legal fight over a change in the noteholders' claim of more than $450 million from secured status to unsecured.
If the court finds that J.P. Morgan Chase had a secured claim, Solutia will have to scrap its current Chapter 11 plan. Solutia's plan calls for former parent Monsanto Co., to backstop a $250-million rights offering to provide environmental cleanup and retiree funds for its former unit.
