Home / Knowledge / News / Textiles / Solutia updates on reorganization & Chapter 11
Solutia updates on reorganization & Chapter 11
24
Jan '08
Solutia Inc announced that the effective date of its confirmed plan of reorganization and its emergence from Chapter 11 will be delayed from the previously anticipated January 25, 2008 emergence date.

As previously disclosed, Solutia's plan of reorganization, which was confirmed on November 29, 2007 , is subject to numerous closing conditions, including entering into an exit financing facility.

The lead arrangers of Solutia's exit financing -- Citigroup Global Markets Inc and certain of its affiliates, Goldman Sachs Credit Partners L.P., Deutsche Bank Trust Company Americas and Deutsche Bank Securities Inc -- informed Solutia yesterday that, in their view, due to continuing conditions in the credit markets, they have not been able to complete the exit financing they committed to on October 25, 2007.

This exit financing consists of a $1.2 billion senior secured term loan facility, a $400 million senior secured asset-based revolving credit facility and $400 million aggregate principal amount of senior unsecured notes.

Under the terms of the commitment, the lead arrangers of the exit financing have an obligation, subject to certain conditions, to provide the term loan facility, the revolving credit facility and, in case they are not able to successfully market the senior unsecured notes, a $400 million senior unsecured bridge facility. The commitment expires on February 29, 2008.

One of the conditions of the lead arrangers' obligations to provide these credit facilities is the absence of any adverse change since October 25, 2007 in the loan syndication, financial or capital markets generally that, in their reasonable judgment, materially impairs syndication of the proposed loan facilities. The lead arrangers have asserted that, this condition has not been satisfied.

Solutia, however, believes that the ongoing conditions in the credit markets began long before October 25, 2007 . Accordingly, Solutia believes that the lead arrangers are required to fund their commitments on or before February 29, 2008 .

Jeffry N. Quinn, the Chairman, President and Chief Executive Officer of Solutia, said "while we disagree with the position asserted by the lead arrangers, we intend to continue to work with them to successfully syndicate the exit facility."

Solutia Inc

Must ReadView All

Textiles | On 26th May 2017

Lenzing unleashes new eco-friendly fibre

There's a new eco-friendly fibre on the anvil—Austrian speciality...

Apparel/Garments | On 26th May 2017

Benetton seeks approval for FDI in single-brand retail

Global fashion brand Benetton Group, has sought Indian government's...

Apparel/Garments | On 26th May 2017

Walmart to conduct GST workshops for SME suppliers

With the objective of supporting its small and medium-sized (SME)...

Interviews View All

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search