Solutia receives underwritten commitment for DIP financing
25 Feb '06
2 min read
Leading manufacturer and provider of inter layers for laminated glass, aftermarket window films, specialty chemicals and an integrated family of nylon products, Solutia Inc announced it has received a fully underwritten commitment for $825 million of debtor-in-possession (DIP) financing, maturing March 31, 2007.
This represents a $300 million increase and more than a nine-month extension over Solutia's current DIP financing.
The increased availability under the DIP financing provides Solutia with additional liquidity for operations and the ability to fund mandatory pension payments that come due in 2006.
The DIP financing can be repaid by Solutia at any time without prepayment penalties.
Citigroup is acting as lead arranger.
"As they announced last week, the filing of their Plan of Reorganization has taken Solutia one very significant step closer to emergence from Chapter 11," said Jeffry N. Quinn, president and CEO, Solutia Inc.
"While they ultimately may not need the extension to their DIP financing, it provides us with the flexibility they need to achieve the optimal resolution to their Chapter 11 case."
This amendment requires the approval of the United States Bankruptcy Court for the Southern District of New York, which Solutia expects to receive in mid March.
Solutia offers specialty products including glass and window products, drug development, resins, additives, carpet fiber and chemicals.
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