Solutia & Monsanto JV serve the framework for Solutia's plan of reorganization
07 Jun '05
6 min read
* Anniston and Sauget Off-Site Environmental Remediation. $50 million of the proceeds from the rights offering would be used for off-site remediation in Anniston, Ala. and Sauget, Ill.
After the proceeds from this portion of the rights offering are exhausted, Monsanto will pay the next $50 million in remediation costs at those sites, less certain expenses incurred at those sites during Solutia's Chapter 11 case.
Solutia would then be responsible for the remediation costs at those sites up to a pre-determined level, after which Monsanto and Solutia would each pay for 50 percent of costs.
3) Litigation costs and toxic tort claims: Monsanto will contribute up to $107 million, minus certain related expenses incurred during Solutia's Chapter 11 case, to be used by Solutia to make distributions under its Plan of Reorganization to certain holders of unsecured claims, including current tort claims. Such unsecured creditors may also receive common stock in the reorganized company under Solutia's Plan.
Solutia will remain responsible for and will continue to pay the $5 million annual installment and the education fund obligations relating to the August 2003 Anniston PCB settlement.
"Importantly, this agreement-in-principle does not require a termination of our pension plan, and it ensures that all environmental obligations related to the historic chemical business of our former parent will be satisfied," addehistoric chemical business of our former parent will be satisfied," added Quinn.
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