Solutia To Pay For Contamination Cleanup

St. Louis, MO, January 30, 2008—Solutia Inc. will likely pay the Environmental Protection Agency about $3 million for the cleanup of contaminated chemical barrels that once polluted an industrial site north of downtown St. Louis.

In a Monday filing in Solutia's Chapter 11 bankruptcy case, Solutia said the payment is in the form of a $3.6 million unsecured claim. Solutia’s reorganization plan calls for such claims to be paid at 83.1 cents on the dollar in shares of a reorganized Solutia, so this would be valued at $2.99 million.

The settlement still needs court approvals.

Solutia inherited the liability from its former parent company, the old Monsanto Co.