ST. LOUIS— Just when it appeared its bankruptcy woes would continue ( FCNews, Jan. 28/Feb. 4), Solutia has come to an agreement with its creditors allowing it to emerge from Chapter 11 reorganization.

“Solutia has emerged as a well-positioned specialty chemicals and performance materials company with market-leading global positions and a diverse portfolio of high-potential businesses,” said Jeffry Quinn, Solutia’s chairman, president and CEO. “We believe we’re a stronger, healthier and more competitive company than at any point in our history. Over the past four years, we have transformed our portfolio through strategic acquisitions, internal investments, asset dispositions and the re-deployment of significant nylon assets to higher-value uses.”

During its time in Chapter 11, Solutia diversified from both an end-market and geographic perspective. In 2007 the company’s net sales from outside the United States were 55% of its total revenue, compared to 39% in 2003. The increase has been driven primarily by Solutia’s Asian growth strategy as well as significant growth in Europe.

“During this period, we have made great strides in improving our financial position by reducing legacy liabilities, enhancing and focusing the business portfolio and delivering strong revenue and operating earnings growth and momentum,” said James Sullivan, Solutia’s senior vice president/CFO. “With a strong balance sheet and more than 50% of our portfolio growing at greater than two times global GDP, we believe we are positioned to deliver increased shareholder value.”

As previously announced last November, the U.S. Bankruptcy Court for the Southern District of New York confirmed Solutia’s plan of reorganization and approved its exit from bankruptcy subject to certain conditions, including the funding of an exit financing facility.

On Feb. 28, Solutia’s $2.05 billion facility was funded by Citigroup Global Markets, Goldman Sachs Credit Partners and Deutsche Bank Securities. This financing is being used to pay certain creditors and for ongoing operations.

In late January, Solutia announced it would not emerge from bankruptcy as planned because “problems in the credit markets have left banks working with the chemical producer unable to come up with the necessary financing.” At the time Solutia said the lead arrangers of its $2 billion exit financing package informed the company of the problem on Jan. 22.

The new common stock of reorganized Solutia began trading on the New York Stock Exchange under the ticker symbol SOA on March 3.