By AP/KWMU
St. Louis, MO – Solutia Inc., the chemical company spun off by Monsanto Co. in 1997, said Wednesday it has filed a revised reorganization plan and hopes to emerge from Chapter 11 bankruptcy protection by the end of this year.
The amended plan, filed in U.S. Bankruptcy Court for the Southern District of New York, is supported by the official committees of creditors and retirees, the company said in a statement late Wednesday.
St. Louis-based Solutia said the plan retains several features of a reorganization plan first proposed in February 2006, but offers unsecured creditors $0.85 on the dollar rather than the original $0.52 on the dollar. Unsecured creditors include such parties as unpaid suppliers.
Original shareholders would not recover any of their investment.
Solutia makes a variety of chemical products, from nylon fibers to plastic interlayers used in laminated glass. The company filed for bankruptcy protection in 2003, partly under the weight of legal costs it retained from Monsanto such as lawsuits over chemical pollution.
Jeffrey Quinn, Solutia's chairman, president and chief executive officer, said the amended plan resulted partly from an increase in the company's valuation since the initial plan was filed last year.
Solutia will request a bankruptcy court hearing on the amended plan in early July. Court approval of its language would clear the way for a vote by creditors, whose approval would send the plan back to the court for final confirmation.