Solutia Europe has extended the due date for its 6.25 per cent Euro Notes, originally due in 2005. The arrangement buys time for the US portion of the group to complete its restructuring before the notes become due. They are now set to mature on 15 December 2008.
"The restructuring allows Solutia Europe to continue normal operations while Solutia Inc and its domestic subsidiaries reorganize," said the company in a statement.
There had been concerns that the operations of Solutia Europe would have been disrupted by the US bankruptcy process, in which Solutia is trying to transfer liabilities of around $100 million (€80m) a year to former parent Monsanto.
Solutia was forced to file for bankruptcy in the US last year in a bid to shake off its responsibility for legal, environmental and retirement costs absorbed when it became an independent company in 1997. The case came to court yesterday.
