Solutia reaches agreement with Monsanto
By Bill Raack, KWMU
St. Louis, MO. – St. Louis-based Solutia Incorporated says it has reached an agreement with Monsanto and certain creditors that could help Solutia to exit bankruptcy protection.
Solutia was formed when Pharmacia, formerly known as Monsanto, spun it off as an independent entity in 1997.
Speaking in an on-line conference call today, Monsanto chairman Hugh Grant said that the company will underwrite an infusion of $ 250 million in equity in Solutia.
"We've focused on bring clarity and removing uncertainty around this and I think today's announcement is a continuation in that process," Grant said. "I think actually we crossed a major hurdle today in getting them a step closer to getting out of bankruptcy and getting on with running their business."
Solutia said it now expects to file a reorganization plan with the U.S. Bankruptcy Court later this summer.