Solutia files to avoid action to preserve legal rights
17 Dec '05
1 min read
Carpet fiber maker Solutia filed several protective actions in its Chapter 11 case. According to federal bankruptcy law, Solutia has two years from its Chapter 11 petition (December 17, 2003) to file certain types of actions.
As a result, the company is filing approximately 90 avoidance actions prior to this deadline, including one such action against Monsanto/Pharmacia, to preserve the legal rights of the bankrupt estate.
"While no decision has been made to pursue these actions and may never do so, company believe it is a prudent step to file them prior to the deadline to preserve the rights of the bankrupt estate," said Jeffry N. Quinn, President and CEO, Solutia Inc. "Solutia remains committed to the agreement-in- principle announced in June. They continue to make progress toward the successful restructuring of Solutia consistent with that agreement."
Solutia offers specialty products including glass and window products, drug development, resins, additives, carpet fiber and chemicals.
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