Solutia Opens Manufacturing Plant in China, Prepares to Emerge from Bankruptcy
St. Louis-based Solutia Inc. has announced in recent days that it has opened a brand-new Saflex® manufacturing plant in Suzhou, China, and that it has reached the constituents in its Chapter 11 bankruptcy case and has agreed to a consensual reorganization.
CLICK HERE for more information on the new plant.
CLICK HERE for more information on the Chapter 11 update.
Solutia Expands Presence in China by Opening New Saflex® Manufacturing Plant in Suzhou
St. Louis-based Solutia Inc. has opened a new plant in Suzhou, China. The plant will produce the company’s Saflex® polyvinyl butyral interlayer.
“Solutia is committed to growth in China, and this new plant is a very significant symbol of that commitment,” says Jeff Quinn, chairman, president and chief executive officer of Solutia Inc. “While Solutia has made a number of major capital investments in its businesses through the years, this is the first entirely new plant we have built from the ground up. We will continue to devote substantial resources to seizing the growth opportunities in China across each of our businesses.”
Solutia to Emerge From Bankruptcy After Reaching With All Major Constituents in Chapter 11 Case
St. Louis-based Solutia Inc. has announced that it has secured the support of all of the major constituents in its Chapter 11 cases for a consensual plan of reorganization.
“I am extremely pleased to announce today that we have reached a comprehensive settlement with all of the major constituents in our bankruptcy case that will form the basis for a revised consensual plan of reorganization that will be filed within the next few days,” says Jeffry N. Quinn, chairman, president and chief executive officer of Solutia Inc. “The revised plan will position Solutia to emerge from bankruptcy by the end of this year as a financially healthy organization well-positioned to create significant value for its stakeholders.”
“The revised plan will provide for $250 million of new investment in reorganized Solutia through a backstopped rights offering to certain creditors, as well as a reallocation of the legacy liabilities that Solutia assumed when it was spun off,” Quinn adds. “Importantly, it also will provide for a resolution of all the litigation between the settling parties including a potential appeal by our noteholders, the adversary proceeding filed by our current equity holders against Monsanto and Pharmacia, and related objections to the Monsanto and Pharmacia claims.”
Need more info and analysis about the issues?
to subscribe to DWM magazine.