Solutia Plan Draws Objection From Dept. Of Labor

Law360, New York (November 28, 2006, 12:00 AM EST) -- The U.S. Department of Labor has filed an objection to bankrupt chemical products maker Solutia Inc.’s proposed reorganization plan, claiming it might violate the Employee Retirement Income Security Act.

According to the objection filed Monday by Secretary of Labor Elaine Chao, Solutia’s Chapter 11 plan contains language that either violates or could be construed to violate ERISA. The objection urges the court not to confirm the plan if the debtors don’t amend it to address the DOL’s concerns.

The DOL has been investigating the Solutia Inc....
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