Solutia DIP increase, maturity extension approved

By Caroline Salls

Pittsburgh, Jan. 23 - Solutia Inc. obtained court approval to amend its debtor-in-possession financing facility to increase the term loan size by $325 million and the revolving credit facility by $75 million and to extend the maturity by one year to March 31, 2008, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the filing, the term loan increase includes $150 million that can only be used to finance a strategic transaction to acquire Flexsys, a joint venture between Akzo Nobel and Solutia.

Also, an increase in some thresholds will allow Solutia to retain more of the proceeds from asset sales.

Solutia, a St. Louis-based manufacturer and provider of performance films, specialty chemicals and an integrated family of nylon products, filed for bankruptcy on Dec. 17, 2003. Its Chapter 11 case number is 03-17949.

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