Judge orders Solutia to turn over documents to note trustee

By Jeff Pines

Washington, March 10 - Solutia Inc. will have to hand over requested documents, meetings minutes, e-mails, notes, computer disks and other forms of documents to J.P. Morgan Chase Bank as indenture trustee for two series of notes.

Among the documents requested by the bank that are covered by the judge's order are those that relate to: the indenture; the existing loan agreement; the Ableco prepetition loan agreement; the Ableco debtor-in-possession financing referring to or relating to J.P. Morgan Chase, the indenture, the notes or any security interest granted in accordance with the two; all documents referring or relating to Solutia's decision to refinance its existing loan; all the documents provided by Solutia to Ableco Finance LLC, Wells Fargo Foothill, Inc., Cerebus Capital Management LP or Congress Financial Corp. referring or about the company's assets, capital structure, or the existing loan agreement.

The order was filed with the U.S. Bankruptcy Court for the Southern District of New York on March 9.

J.P. Morgan Chase Bank is the indenture trustee for $150 million in 6.72% notes due Oct. 15, 2037 and $300 million of 7.375% notes due Oct. 15, 2027. It filed an objection concerning Solutia's motion requesting permission for the use of cash collateral, authorizing it to incur post-petition debt and granting security interests and superpriority claims.

The company said it filed for Chapter 11 in December to obtain relief from its legacy liabilities, which include litigation and settlement costs, environmental remediation and Monsanto retiree healthcare obligations that Solutia was required to assume when it was spun off from the former Monsanto Co., now Pfizer's Pharmacia subsidiary.

Solutia's Chapter 11 case number is 03-17949.

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