Solutia's European unit amends notes to allow sale of subsidiary

By Jeff Pines

Washington, Nov. 16 - Solutia Inc.'s European subsidiary amended the indenture to its 10% senior secured euro notes due 2008 so it can sell the subsidiary's pharmaceutical services business before Sept.1, 2005.

Solutia reported the amendment in a Tuesday filing with the Securities and Exchange Commission.

Last year, the pharmaceutical services unit accounted for about 2% of Solutia's annual revenue.

The St. Louis-based chemical firm said getting the amendment does not guarantee a sale, but that its European unit is actively working to sell the business.

If a sale is completed, Solutia Europe must redeem the euro notes with at least 95% of the net cash proceeds from the sale at 109% of the principal.

Solutia filed for bankruptcy on Dec. 17, 2003. Its Chapter 11 case number is 03-17949.

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