Solutia agrees to $67 million sale of Dequest water treatment phosphonates business

By Caroline Salls

Pittsburgh, March 12 - Solutia Inc. has reached a definitive agreement to sell Dequest, its water treatment phosphonates business, to Thermphos Trading GmbH for $67 million in cash, according to a company news release.

Thermphos will also assume some of the liabilities of the Dequest business.

According to the release, the parties will enter into a lease and operating agreement, under which Solutia will continue to operate the Dequest facility to produce Dequest products exclusively for Thermphos at Solutia's plant in Newport, Wales.

The closing of a sale of the Dequest business will be subject to governmental and regulatory approvals and other customary closing conditions, as well as subject to approval by the U.S. Bankruptcy Court for the Southern District of New York.

Solutia said it plans to seek bankruptcy court approval of the bidding procedures and other aspects of the auction process in April.

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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