Solutia retirees join unsecured creditors in seeking equity committee's dissolution

By Jeff Pines

Washington, March 31 - Solutia Inc.'s official committee of retirees teamed up with the committee of unsecured creditors in seeking to disband the company's equity holders' committee. The unsecured creditors filed their motion on March 30.

In a March 31 motion filed with the U.S. Bankruptcy Court for the Southern District of New York, the retirees committee said the equity holders' committee is just adding more costs to an already expensive process.

It noted the St. Louis-based chemical company reported negative shareholder value of more than $1 billion in its Jan. 31 initial operating report.

The retiree committee added that the equity holders on the committee are sophisticated institutional investors who hired and can afford their own lawyers and an advisor. Making the company pay for it in the retirees' eyes is an unnecessary burden on the reorganization.

Solutia filed for Chapter 11 on Dec. 17 seeking relief from its legacy liabilities, which include litigation and settlement costs, environmental remediation and Monsanto retiree healthcare obligations that Solutia was required to assume when it was spun off from the former Monsanto Co., now Pfizer's Pharmacia subsidiary.

The U.S. trustee's response is due by April 6 and an April 13 hearing is scheduled.

The company's Chapter 11 case number is 03-17949.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.