Solutia “to operate without interruption” says chairman

Safety glass interlayer manufacturer Solutia Inc., which filed for Chapter 11 bankruptcy protection on 17 December 2003, announced 19 December 2003 that it had received interim court approval of a USD…

Safety glass interlayer manufacturer Solutia Inc., which filed for Chapter 11 bankruptcy protection on 17 December 2003, announced 19 December 2003 that it had received interim court approval of a USD 500 million debtor-in-possession (DIP) credit facility, USD 350 million of which will replace Solutia“s current senior credit facility. The company also received approval of a number of “first day motions” from the U.S. Bankruptcy Court for the Southern District of New York, including authorization to continue paying employee wages, employee business expenses and obligations under the company“s self-insured and third-party insured benefit plans, as well as certain company-sponsored benefit programs, without interruption. “We are pleased with the prompt approval by the Bankruptcy Court of our “first day motions,“ which, taken together, will enable the Company to operate without interruption and meet normal business obligations,” said John C. Hunter, chairman, president and chief executive officer of Solutia. “Moreover, these accomplishments will allow us to remain focused on serving customers, which is our top priority.” Hunter said that Solutia“s operations worldwide have continued without interruption and customer needs have been met. “Our operations in the U.S. and around the world continue to function normally and we are maintaining our commitment to provide quality goods and services to our customers,” he said.