Edited from: “Amended plan of reorganisation and disclosure statement”, “Solutia announces changes in leadership” and company website
Solutia filed for Chapter 11 bankruptcy protection in December 2003. Since then, a federal bankruptcy judge in New York has given Solutia several extensions in filing with the court on how it intends to emerge from bankruptcy protection. The filing was made to restructure the company's balance sheet by reducing indebtedness to appropriate levels, to streamline operations and reduce costs.
On 16 May 2007, Solutia filed its amended plan of reorganisation and disclosure statement with the US bankruptcy court, New York. The next step in the reorganisation process will be a hearing to consider the adequacy of the disclosure statement. If the court determines that the disclosure statement provides sufficient information for claim holders and other interest holders to vote on the plan of reorganisation, the disclosure statement and plan would then be sent to claim holders for voting purposes.
Following the voting process, Solutia will ask the bankruptcy court to hold a hearing to consider approval or "confirmation" of the plan of reorganisation. If the court confirms the plan, it is believed that Solutia would emerge from Chapter 11 shortly thereafter.
The “roadmap to Solutia's future” is believed to be based on its portfolio strategy, which it says provides a simple framework for each of its three business platforms:
Expand and grow performance films;
Aggressively grow select specialty products businesses; and
Maximise the value of integrated nylon.
In support of its portfolio strategy, the company is leveraging many of its core competencies, including:
Leading brands;
Manufacturing and technical resources;
Customer service;
Valued products and services; and
Established channels to market.
The company remains confident that it can be brought out of Chapter 11: “This is an exciting opportunity for me and the other members of the leadership team. There is no question that Solutia's situation presents many challenges. However, we are anxious to meet those challenges. We look forward to the opportunity to refocus and re-energise this company, and ultimately to bring it out of Chapter 11. We intend to do whatever it takes to achieve those goals and make this company a success”, concludes chairman, president and chief executive officer, Jeffry Quinn.
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Financial highlights: Solutia, year ended 31 December
|
|
2008 |
2007 |
2006 |
2005 |
2004 |
|
Sales ($ m) |
2,110 |
1,643 |
2,795 |
2,645 |
2,529 |
|
EBITDA ($ m) |
392 |
230 |
-- |
-- |
-- |
|
Net Profit ($ m) |
-- |
-208 |
2 |
8 |
-320 |
|
Total Assets ($ m) |
-- |
2,633 |
2,017 |
1,884 |
1,958 |
|
Number of Employees |
3,700 |
6,000 |
5,100 |
5,400 |
5,700 |
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Solutia
Company Structure
Solutia was founded in St Louis in 1901 as Monsanto Company. Solutia was created as an independent company on 1 September 1997, after Monsanto shareholders approved the spin-off of the company's chemical businesses.
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