Volume 39, Issue 1, January 2004
Solutia Files Chapter 11 Seeking
Relief from Former Monsanto Liabilities
St. Louis-based Solutia and 14 of its U.S. subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of New York. Not included in the filing were Solutia’s affiliates outside of the United States.
According to a news release issued by Solutia, its worldwide operations will continue without interruption during the proceedings. The company says it has taken steps to ensure continued supply of goods and services to its customers, and has received a commitment for up to $500 million in new debtor-in-possession (DIP) financing, $350 million of which will replace its current senior credit facility. The release said that upon court approval, the DIP financing, combined with Solutia’s cash from operations, will provide sufficient funding for operations during the Chapter 11 process. Solutia said vendors will be paid in full for all goods furnished and services provided after the filing date, as required by the Bankruptcy Code. In addition, the company has requested court approval to continue to pay employees without disruption, and in the same manner as before filing.
According to Solutia, the decision to file Chapter 11 was made to obtain relief from the negative impact caused by legacy liabilities, including litigation and settlement costs, environmental remediation and Monsanto retiree health care obligations that Solutia was required to assume upon its spin-off from the former Monsanto Co. Solutia’s news release stated that under the U.S. Bankruptcy Code the liabilities will be discharged as pre-petition liabilities pursuant to a plan of reorganization.
“Solutia has spent approximately $100 million each year to service legacy liabilities that it was required to accept at the time of the spin-off from Monsanto,” said John C. Hunter, chairperson, president and chief executive officer. “We have taken aggressive steps to offset these legacy costs and strengthen our financial health by cutting more than $100 million from our operating costs, working with Monsanto Corp. to resolve the onerous Alabama PCB litigation, refinancing our credit facility and beginning to restructure our broader debt portfolio. Concurrently, we have made every effort to come to an out-of-court resolution with Monsanto regarding these legacy liabilities. However, these negotiations have not been successful.”
|F. Barkow Announces Free Shipping in February
Commemorating its 125th anniversary, F. Barkow Inc. of Milwaukee has announced it will offer free shipping on its 600 and 700 series glass carriers during the month of February. New orders booked and paid for in February will qualify for the free shipping anywhere in the continental United States.
The 600 series is designed for vans while the 700 series is for pick up trucks. The offer applies to any standard glass carriers in the line that is manufactured in aluminum, steel or stainless steel.
Info www.barkow.com or call 800/558-5580.
Yellow Page Expert to Keynote 2004 Glass Expos
Barry Maher author of “Yellow Pages Advertising,” and the nation’s leading authority on effective Yellow Page advertising, will be the keynote speaker at all 2004 Glass Expos, sponsored by USGlass magazine. Maher specializes in helping companies improve their results from their ads while saving money.
Companies can learn how to make their Yellow Page advertisement stand out and receive business calls from customers even when surrounded by ads for their competitors. As quoted by Time magazine, “Barry Maher has helped thousands of small businesses get the most effective and cost-effective Yellow Pages advertising possible. [He’s] easily the most widely respected consultant, speaker, writer on the subject.”
By attending the Glass Expos, attendees may have the opportunity to meet privately with Barry Maher, who was called “the nation’s leading independent authority on Yellow Pages advertising” by the publisher of Yellow Pages and Directory Report.
Info www.glass.com or call 540/720-5584 ext. 150; for attendee information; 540/720-5584 ext.115 for exhibitor information.
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