Hearing on Solutia's secured notes trustee request for partial summary judgment adjourned until Wednesday

By Reshmi Basu

New York, Oct. 26 - The hearing on Solutia, Inc.'s senior secured notes trustee motion, which seeks a partial summary judgment that allows for the full amount of senior secured notes claims, has been postponed to Wednesday.

The hearing was scheduled to take place Friday in the U.S. Bankruptcy Court for the Southern District of New York.

The noteholders, led by their trustee, Bank of New York, have argued that they are owed $209.9 million based on the principal amount of the 11¼% senior secured notes due in 2009 plus accrued interest of some $13 million.

However, Solutia contends they have exaggerated the amount and are not entitled to the interest payments or other damages.

Solutia, a St. Louis-based manufacturer and provider of performance films, specialty chemicals and an integrated family of nylon products, filed for bankruptcy on Dec. 17, 2003. Its Chapter 11 case number is 03-17949.

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