Bank Rebuffs Solutia Creditors On "Disputed" $12M

Law360, New York (January 10, 2008, 12:00 AM EST) -- The Bank of New York, acting as trustee for a group of noteholders in Solutia Inc.'s bankruptcy case, demanded on Wednesday that the court deny a motion by the unsecured creditors committee to withhold $12.1 million from an interest payment to the noteholders on the grounds that it is disputed.

The committee's motion, Bank of New York said, “highlights just how aggressively the creditors committee is willing to renege on prior commitments to pursue its leverage tactic.”

The dispute began last year, when the committee moved...
To view the full article, register now.