Solutia Asks To Settle Claims Dispute For $220.5M

Law360, New York (January 22, 2008, 12:00 AM EST) -- After a successful weeklong mediation, Solutia Corp. asked the bankruptcy court Friday to approve its $220.5 million settlement with a group of noteholders in its Chapter 11 case over disputed notes claims.

The claims refer to $223 million in 11.25% Senior Secured Notes, due July 2009, that the company issued in July 2002.

In November 2004, the Bank of New York, acting as the indenture trustee, filed a proof of claim against Solutia for the $223 million.

Solutia fought back against the asserted amount, arguing that...
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