Solutia files plan supplement, including exit commitment, new officers and directors

By Caroline Salls

Pittsburgh, Nov. 20 - Solutia Inc. has filed the supporting documents to its fifth amended plan of reorganization, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

Included in the filing were the company's $2 billion exit facility commitment letter, the reorganized company's certificate of incorporation and by-laws, the certificates of incorporation and by-laws for the company's subsidiaries and summaries of Solutia's management, executive and director incentive programs.

In addition, the supplement included the lists of directors of the reorganized company and its subsidiaries, Solutia's 2008 retiree welfare plan, a copy of the stockholder's agreement between Solutia and Monsanto Co. and the general unsecured claims monitor.

As previously reported, Citi, Goldman Sachs and Deutsche Bank are the joint lead arrangers and joint bookrunners for the exit financing.

Proceeds will be used to pay creditors under Solutia's plan of reorganization and to fund the ongoing operations of the company after its emergence from Chapter 11 bankruptcy.

Consistent with the terms of the company's disclosure statement, the exit financing package includes a $400 million five-year senior secured asset-based revolving credit facility, a $1.2 billion seven-year senior secured term loan facility and a $400 million eight-year senior unsecured bridge facility.

The reorganized company's directors will include Eugene I. Davis, Robert K. de Veer Jr., James P. Heffernan, W. Thomas Jagodinski, William T. Monahan, J. Patrick Mulcahy, Robert A. Peiser and Jeffry N. Quinn.

The officers will include Quinn, president, chief executive officer and chairman of the board; James M. Sullivan, senior vice president, chief financial officer and treasurer; Luc de Temmerman senior vice president and president, Performance Products; Jonathon P. Wright, senior vice president and president, Integrated Nylon; Kent J. Davies, senior vice president and president, CPFilms; James R. Voss, senior vice president and president, Flexsys; Robert T. DeBolt, senior vice president, business operations; Rosemary L. Klein, senior vice president, secretary and general counsel; and Hal E. Wallach Jr., senior vice president, human resources.

Solutia's plan confirmation hearing is scheduled for Nov. 29, and the company previously said it expects to exit bankruptcy by the end of the year.

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 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 03-17949.

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