Solutia Wins Settlement Approval

New York, NY, January 21--After receiving more time to file its reorganization plan, Solutia Inc. has garnered approval for a number of settlements to further ease its exit from bankruptcy, according to the Deal.com. Judge Prudence Carter Beatty in the U.S. Bankruptcy Court for the Southern District of New York in Manhattan approved three agreements, including a $4.6 million settlement between the bankrupt chemical manufacturer and E.I. duPont de Nemours Inc. The agreement settles a $36 million claim by Dupont. Also, Beatty approved a settlement between Solutia, Armstrong World Industries Inc., and Pharmacia Corp. over a personal injury lawsuit filed by two claimants who alleged harmful exposure to chemicals. Armstrong sued Solutia and Pharmacia seeking financial protection from the suit, but Solutia denied any liability. All parties settled the claims for an undisclosed amount. Lastly, Beatty approved a third settlement that formalizes a contract Solutia entered in 2003 to supply General Electric Co. with various products to its plastics division. Solutia filed for Chapter 11 protection Dec. 17, 2003, listing assets of $2.85 billion and debt of $3.22 billion. In December 2004, the company won a 90-day extension to file its reorganization plan by April 11. Solutia said it is in talks with its various creditors group to reach a consensual solution to its liabilities.