Solutia looks to extend maturity of €200 million 6¼% notes, remove guarantee

New York, Nov. 14 - Solutia Inc. said it is asking holders of the €200 million 6¼% notes due 2005 issued by Solutia Europe SA/NA to extend the maturity, approval removal of a guarantee and change the interest rate.

The St. Louis-based chemical company said in a filing with the Securities and Exchange Commission that it will convene a meeting of the holders under the Belgian Companies Code on Dec. 16 to seek consent for the changes.

Holders of at least 50% of the bonds by value must be represented at the meeting and at least 75% by value of those represented must vote in favor for the amendments to be passed.

Solutia is looking to extend the maturity of the notes to Feb. 14, 2008, remove its guarantee of Solutia Europe SA/NA's obligations and adjust the interest rate.

The proposed change follows the announcement on Oct. 16 by Solutia that it is seeking talks with bondholders on restructuring its debt in light of its liquidity requirements.

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