Solutia Inc. has launched the process to amend its debtor-in-possession (DIP) financing to improve pricing, the manufacturer of performance films said 17 May 2005. The amendment would also provide for…
Solutia Inc. has launched the process to amend its debtor-in-possession (DIP) financing to improve pricing, the manufacturer of performance films said 17 May 2005. The amendment would also provide for a six-month extension of the facility, through 19 June 2006. The size of the USD 525 million facility would not change. Citigroup Global Markets Inc. will act as lead arranger. “Considering Solutia“s significantly improved financial performance and the strong market conditions, we may have an opportunity to achieve a lower interest rate on our credit facility, which would generate savings for the Company,” said Jeffry N. Quinn, president and CEO, Solutia Inc. “In addition, although we ultimately may not need the proposed extension through 19 June 2006, it would provide us with greater flexibility should we require more time to achieve the optimal resolution to our Chapter 11 case.” The proposed amendment, if approved by the lender group, would require Bankruptcy Court approval. Solutia expects approval of the proposed amendment, but no assurances can be given that the lenders or the Court will approve the amendment.