Solutia Seeks Citi Testimony on Exit Financing

Philadelphia, PA, February 13, 2008 — Solutia Inc. wants to force Citigroup Inc. Chief Executive Vikram Pandit to answer questions about his firm's decision to back out of $2 billion worth of promised Chapter 11 exit financing.

Solutia is seeking a court order to depose Citigroup's CEO as the company prepares for a Feb. 21 trial aimed at compelling Citi, Deutsche Bank AG and Goldman Sachs Group Inc. to come through with the bankruptcy-exit loans.

"The decision not to fund Solutia's exit financing was made by none other than Pandit himself," lawyers for Solutia wrote in papers filed in the U.S. Bankruptcy Court in Manhattan.

Solutia said Citigroup told its lawyers they couldn't question Pandit because they had no evidence that he made the decision to abandon the financing deal. But Solutia financial adviser Todd Snyder of Rothschild Inc. says a Citigroup lawyer told him in January that the decision came from Pandit.

Pandit replaced Charles Prince as CEO of Citgroup in December, after Prince resigned amid mounting losses from the subprime loan situation.

Solutia's lawsuit against its lenders is the first major bankruptcy litigation resulting from the credit crunch.

Citigroup, Deutsche Bank and Goldman Sachs cited deteriorating conditions in the credit markets for their decision to back out of the Solutia financing.