LAWSUITS NEWS & LEGAL INFORMATION
Bondholder Interest
Washington, DC: (Jan-22-08) A group of bondholders brought a lawsuit against Solutia Inc., over a dispute regarding unpaid interest that could have complicated the company's business plans after its exit from bankruptcy protection. Sources close to the case stated that Solutia fought with holders of its 11.25% senior notes due 2009 for months. The company claimed that it owed about $210 million to the bondholders. The bondholders, however, claimed they were owed about $283 million for interest they would have collected had Solutia made payments through the maturity date of the notes in 2009.
As part of a settlement reached, sources confirmed that Solutia Inc. has agreed to pay the group of bondholders $220.5 million to settle the dispute. Records show that in a filing with the US Bankruptcy Court in Manhattan, the chemical company said the $220.5 million cash settlement, payable upon its emergence from Chapter 11 protection, allows it to avoid keeping $37.5 million in reserve while awaiting the outcome of litigation with the holders of its 11.25% senior notes. [FORBES: BONDHOLDER INTEREST]
Published on Jan-23-08
As part of a settlement reached, sources confirmed that Solutia Inc. has agreed to pay the group of bondholders $220.5 million to settle the dispute. Records show that in a filing with the US Bankruptcy Court in Manhattan, the chemical company said the $220.5 million cash settlement, payable upon its emergence from Chapter 11 protection, allows it to avoid keeping $37.5 million in reserve while awaiting the outcome of litigation with the holders of its 11.25% senior notes. [
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