Issue Date: February 11, 2008
Solutia Sues Banks Over Exit Package
Solutia has filed suit in U.S. bankruptcy court against Citigroup, Goldman Sachs, and Deutsche Bank for withdrawing a $2 billion package that would have financed its exit from bankruptcy. According to Solutia, the banks made a firm commitment to the package in October 2007 but retracted it in late January, claiming there had been a change in the credit markets since entering the commitment. Solutia CEO Jeffry N. Quinn says the banks promised the package knowing that the financial markets were in disarray. "It is a well-documented fact that the ongoing conditions in the credit markets began in the summer of 2007," he says.
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