Solutia Seeks OK For $500M Calpine Deal

Law360, New York (August 27, 2007, 12:00 AM EDT) -- Solutia Inc. has asked a bankruptcy judge to approve a $500 million agreement with Calpine Central LP to settle one of the biggest unsecured claims levied against the company in its Chapter 11 case.

Under the deal, which Solutia submitted to the U.S. Bankruptcy Court of Manhattan on Friday, Calpine would get an allowed general unsecured claim against its estate for $140 million. The energy company had filed claims asking for $500 million in damages after Solutia allegedly violated a contract between the two.

The settlement...
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