ST. LOUIS (Dec. 17)—Solutia Inc., a 50-percent owner of rubber chemicals producer Flexsys S.A., has filed for Chapter 11 protection in U.S. Bankruptcy Court, citing financial woes related to legal, environmental and health care liabilities assumed when it was spun off from the former Monsanto Co.
A global supplier of performance films, specialty chemicals and nylon products, Solutia said its global operations will be unaffected by the Chapter 11 proceedings, and that it will continue paying employees and suppliers and supplying customers. The group has arranged a $500 million loan package to fund operations during the process. Solutia has spent around $100 million each year to service the liabilities linked to the spinoff from Monsanto, according to John Hunter, chairman, president and CEO of Solutia.
The company, he said, had sought an out-of-court resolution with Monsanto regarding these liabilities, but negotiations proved unsuccessful.