St. Louis, MO, Jan. 8--Solutia Inc.'s U.S. Bankruptcy Court hearing for approval of final debtor-in-possession financing was adjourned to Jan. 16 from Jan. 9, in order to give the creditors' committee time to study the proposed financing.
In a press release Thursday, the maker of fibers for carpets, space shuttle tires and upholstery said it will seek alternate financing arrangements more favorable than the debtor-in-possession plan.
When Solutia entered Chapter 11 bankruptcy in December, a bankruptcy judge allowed the company to access $500 million in debtor-in-possession financing on an interim basis.
Solutia said the interim financing has encouraged several financial institutions to submit more favorable proposals than the ones it received initially.
Solutia's current liquidity is $170 million, of which $140 million is in the U.S.
