Solutia emerges from bankruptcy

Solutia Inc. this morning announced that it has emerged from Chapter 11 bankruptcy protection after receiving $2.05 billion in exit financing.

The financing was provided by Citigroup Inc., Goldman Sachs Group Inc. and Deutsche Bank AG. Solutia, based in Town and Country, said it will use the funds to pay certain creditors and for ongoing operations.

Chief among those creditors is Creve Coeur-based Monsanto Co., which spun out of the same parent company as Solutia; the companies share responsibility for a number of environmental cleanups and related tort litigation.

Monsanto said Thursday it will receive from Solutia approximately $162 million, which will result in a one-time gain in the range of 22 to 24 cents a share to its second-quarter earnings. Monsanto also will get about 2.5 million shares of Solutia’s new common stock.

Solutia said its new shares, which have been trading under the ticker symbol SOA on a “when issued” basis on the New York Stock Exchange, will drop that designation on Monday. The company’s old stock, which has been trading under the SOLUQ ticker symbol on the over-the-counter market, were canceled today.

The new shares listed at $17.10 in late-morning trading, up 15 cents over Wednesday’s close.

To read our previous story, click here.