Solutia wins extension to file reorganization plan
Date: 19-Apr-04
Country: USA
Judge Prudence Carter Beatty ordered the 90-day extension, until July 14, following a Tuesday hearing in U.S. Bankruptcy Court in New York.
She called the extension "necessary and appropriate" to carry out the bankruptcy process.
Under bankruptcy law, St, Louis-based Solutia had 120 days to propose a reorganization plan after it filed for Chapter 11 bankruptcy protection in mid-December.
During this "exclusive period," Solutia gets first crack at filing a reorganization plan, ahead of creditors or other parties. That period was set to expire this week.
A lawyer familiar with the case said the judge recognized that the company needed more time to develop its plan.
Bankruptcy courts usually extend exclusive periods if companies are moving through the process in good faith, according to legal experts.
Judge Beatty also gave Solutia until September 12, 2004, to solicit creditors' votes to approve whatever plan emerges.
Solutia filed for Chapter 11 after it was overwhelmed by huge liabilities from environmental lawsuits and employee benefits it said were forced upon it by Monsanto Co. (MON.N: Quote, Profile, Research) , its former parent.
Solutia listed $2.85 billion in total assets and debts of $3.22 billion when it filed for bankruptcy protection.
