Solutia Creditors Will Get $1.2B Under Plan

Law360, New York (May 17, 2007, 12:00 AM EDT) -- Chemical company Solutia Inc. has filed its first amended plan of reorganization in hopes of emerging from Chapter 11 protection before October.

The proposed plan, which was filed with the U.S. Bankruptcy Court for the Southern District of New York on Wednesday night, promises the distribution of 119.5 million shares worth $1.2 billion to creditors upon the company’s exit from bankruptcy.

Under the plan, which awaits the approval of creditors and the court, Solutia will allocate shares in the reorganized company’s common stock to certain creditors...
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