Solutia, banks still in stalemate over $2 billion financing deal
A stalemate continues between Solutia Inc. and a trio of banks that had promised to provide it with $2 billion in financing, according to a filing Friday with the Securities and Exchange Comission. Solutia, based in Town and Country, needs the financing package to exit a four-year-old bankruptcy reorganization.
On Tuesday, Solutia formally demanded the funding by Feb. 6 from Citigroup Global Markets Inc., Goldman Sachs Credit Partners LP and Deutsche Bank Securities Inc. The banks replied the next day that adverse changes in financial markets have impaired their ability to sell the debt, a condition that allows them to back out of the deal.
Solutia maintains the banks are obligated to provide the financing.
“We’re still hopeful that we will be able to work through matters” with these banks, said Solutia spokesman Dan Jenkins. “At the same time, we’re exploring other alternatives.
