ST. LOUIS (Feb. 26, 2008) — Solutia Inc. has reached an agreement which will allow it to exit Chapter 11 Feb. 28.
Solutia made a deal with Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P., and Deutsche Bank Securities Inc. to fund Solutia's exit financing package.
Solutia has agreed to dismiss the lawsuit, with prejudice, that it filed against the banks once the exit financing is funded. The suit was filed Feb. 6.
The banks will waive the market material adverse change provision that was contained within the original commitment. It also will increase the size of the senior secured asset-based revolving credit facility from $400 million to $450 million.
A hearing was scheduled for today to obtain necessary court actions.