Solutia asks court to extend exclusivity

By Jeff Pines

Washington, Nov. 23 - Solutia Inc. asked the U.S. Bankruptcy Court for the Southern District of New York Tuesday to extend its exclusive right to file a reorganization plan to April 10 and its exclusive right to solicit votes for the plan until June 9.

Its exclusive period to file a plan ends Jan. 10 and its exclusive right to solicit votes ends March 10, 2005.

The claims bar date, the date by which creditors must provide proof of their claims, will pass by the time of the hearing. Solutia said the claims bar date is an important step in helping it restructure and calculate how much each creditor will get.

The St. Louis-based chemical company's attorneys believe that many creditors will rush to file their claims to meet the bar date and the company will need to time to evaluate the claims.

Solutia also faces tough legal issues involving environmental issues and retiree benefits, it said.

In addition, the company said it is working towards a solid valuation of the company and is continuing its discussions with its key stakeholders on a reorganization plan.

A Dec. 6 hearing is scheduled.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.