Solutia Emergence From Bankruptcy Delayed

St. Louis, MO, January 23, 2008--Solutia Inc. is delaying its emergence from bankruptcy due to deteriorating conditions in the credit market.

The company was originally scheduled to emerge from Chapter 11 on Jan. 25. However, the lead arrangers of Solutia's exit financing -- Citigroup Global Markets Inc. and certain of its affiliates, Goldman Sachs Credit Partners L.P., Deutsche Bank Trust Company Americas and Deutsche Bank Securities Inc.—told the company that they have not been able to complete the exit financing they committed to last Oct. 25. The financing consists of a $1.2 billion 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.

However, Solutia said that the lead arrangers are required to fund their commitments by Feb. 29 because the problems in the credit market began well before Oct. 25.

Solutia CEO Jeffry N. Quinn said, "While we disagree with the position asserted by the lead arrangers, we intend to continue to work with them to successfully syndicate the exit facility."