Bankruptcy Judge Grants Solutia Extension to Emerge
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."
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.
Solutia spokesperson Gary Ruskin, such extensions, in some cases,
multiple ones, are common in complex bankruptcy matters.
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.