Solutia reorganization plan accepted by majority of creditors; senior secured noteholders reject it

By Caroline Salls

Pittsburgh, Nov. 28 - Solutia Inc.'s plan of reorganization was accepted by a majority of voting creditors but was rejected by the company's senior secured noteholders, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, 12 holders, or 24.49% in number, of $20.03 million, or 11.38% in amount, of the senior secured notes claims voted to accept the plan, while 37 holders, or 75.51% in number, of $155.98 million, or 88.62% in amount, of these creditors voted to reject it.

Meanwhile, all 20 holders of $50,000 in convenience claims voted to accept the plan, as well as all 135 holders of $5.89 million in CPFilms claims; the one holder of the $825.15 million Monsanto claim; all 55 holders of $145.58 million in unsecured noteholder claims; the one holder of a $35 million retiree claim; and the one holder of a $10.11 million Pharmacia claim.

A total of 576 holders, or 99.65% in number, of $263.09 million, or 99.99% in amount, of general unsecured claims voted to accept the plan, while two holders, or 0.35% in number, of $13,059, or 0.01% in amount, of these claims voted to reject it.

In addition, holders of 39.9 million, or 99.51%, of the holders of equity interests in Solutia accepted the plan, while holders of 197,848, or 0.49% of the interests, rejected it.

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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