Solutia Launches Amendment to Re-price Debtor-In-Possession Financing

Solutia Inc. manufacturer and provider of performance films, specialty chemicals and an integrated family of nylon products, today announced it has launched the process to amend its debtor-in-possession (DIP) financing to improve pricing.

The amendment would also provide for a six-month extension of the facility, through June 19, 2006. The size of the $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 June 19, 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. The Company expects approval of the proposed amendment, but no assurances can be given that the lenders or the Court will approve the amendment.

Forward-Looking Statement
This press release contains forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by the forward looking statements. Assumptions and other important factors that could cause our actual results to differ materially from those anticipated in our forward-looking statements include, among other things: (i) the ability of Solutia to develop, prosecute, confirm and consummate one or more Chapter 11 plans of reorganization; (ii) the potential adverse impact of the Chapter 11 filing on Solutia's operations, management and employees, and the risks associated with operating businesses under Chapter 11 protection; (iii) the ability of Solutia to comply with the terms of the DIP financing facility; (iv) world economic conditions, competitive pressures, gain or loss of significant customers, labor relations and disruption of operations, raw material and energy costs, currency and interest rate fluctuations, success in implementing pricing actions and managing spending, operating rates, cost of debt, environmental compliance and remediation and other factors; (v) customer response to the Chapter 11 filing; and (vi) the risk factors or uncertainties listed from time to time in Solutia's filings with the Securities and Exchange Commission and with the U.S. Bankruptcy Court in connection with the Company's Chapter 11 filing. Other factors and assumptions not identified above are also relevant to the forward-looking statements, and if they prove incorrect, could also cause actual results to differ materially from those projected.

600450 Solutia Launches Amendment to Re-price Debtor-In-Possession Financing glassonweb.com

See more news about:

Others also read

Madico®, Inc. Acquires Midwest Marketing’s Distribution Business
Madico, Inc., one of the world’s leading manufacturers of a broad range of materials-based solutions, announced its acquisition of the window film distribution business of Midwest Marketing, Inc.
Eastman Celebrates Partnership with Hendrick Motorsports' No. 88 Race Team with LLumar® Branded Celebration on 8/8
Eastman is launching an annual celebration over the course of its partnership with the No. 88 team on August 8, 2018 (8/8).
Tint-Off™ Competition Registration Closes in One Week
If you plan to vie for the title of "World's Greatest" in this year's Tint-Offs™ at the International Window Film Conference and Tint-Off™ (WFCT) in San Antonio on September 27-29, then act quickly. Competition registration closes in one week on August 15.
IWFA Education Day Returns for WFCT 2018
The International Window Film Association (IWFA) will return as the sponsor of the seminars on IWFA Education Day at the 2018 International Window Film Conference and Tint-Off™ (WFCT) this fall in San Antonio, Texas.
AP Tinting: Custom UV Decorative Film – Bell West End Apartments
The apartment building, which houses mainly Duke University students, needed more privacy without fully blocking their windows, or installing up shades.
Rolls Royce used a switchable glass projection screen to launch the Dawn in Harrods famous store window
Switchable technology has revolutionised the way we see window privacy.

From industry

Da Vincilaan 1,
1935 Zaventem
Belgium

Schaliënhoevedreef 20-D,
2800 Mechelen
Belgium

NEWS RELATED PRODUCTS

Vitro Architectural Glass (Formerly PPG Glass)

Add new comment