Federal Bankruptcy Judge Grants Solutia Extension to Emerge

Federal bankruptcy judge Prudence Carter Beatty of New York has granted St. Louis-based Solutia Inc. a three-month extension to file its bankruptcy plan, until July 14, calling the extension "necessary and appropriate to carry out the provisions of the bankruptcy code."

Solutia filed for Chapter 11 federal bankruptcy last December and was required by law to draft a new business plan within the first 120 days of bankruptcy that would show its lenders how it would return to profitability. That period, which would have expired this week, gives the company the opportunity to formulate its restructuring without worrying about competing plans from competitors, reported the Associated Press. The ruling gives Solutia until September 12 to solicit creditors' votes to approve whatever plan emerges.

According to Solutia spokesperson Gary Ruskin, such extensions, in some cases, multiple ones, are common in complex bankruptcy matters.

Solutia and 14 of its U.S. subsidiaries filed for Chapter 11 last December seeking relief from financial obligations it was assigned when it was pun off by Monsanto Co.