UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JANUARY 16, 2004
SOLUTIA INC.
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE
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(STATE OF INCORPORATION)
001-13255 43-1781797
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(COMMISSION (IRS EMPLOYER
FILE NUMBER) IDENTIFICATION NO.)
575 MARYVILLE CENTRE DRIVE, P.O. BOX 66760, ST. LOUIS, MISSOURI 63166-6760
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(314) 674-1000
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REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE
ITEM 5. OTHER EVENTS.
On January 16, 2004, Solutia issued a press release announcing that
the U. S. Bankruptcy Court approved Solutia's final debtor-in-possession
financing. A copy of the press release is filed as Exhibit 99.1 and is
incorporated here by reference. On January 16, 2004, Solutia and certain of
its subsidiaries entered into a finance agreement for up to $525 million in
debtor-in-possession financing. A copy of the finance agreement is filed as
Exhibit 99.2 and is incorporated here by reference.
The actual rate of return on plan assets of the Company's U.S.
qualified pension plan for the year ended December 31, 2003 was in excess
of 20%, which is significantly greater than the 9% rate of return assumed
for such period. Due to strong asset performance during 2003 and other
factors, the amount of pension plan underfunding for this plan
significantly decreased from December 31, 2002 to December 31, 2003.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits 99.1 and 99.2 listed below are filed as part of this
report.
Exhibit Number Description
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99.1 Press Release dated January 16, 2004, issued by Solutia
Inc. announcing that the U. S. Bankruptcy Court approved
Solutia's final debtor-in-possession financing
99.2 Finance Agreement dated as of January 16, 2004 by and
among Solutia Inc. and Solutia Business Enterprises, Inc.,
as debtors and debtors-in-possession, as Borrowers,
Certain Subsidiaries of Solutia Inc. Listed as a Guarantor
on the Signature Pages hereto, as debtors and
debtors-in-possession, as Guarantors, the Lenders from
Time to Time Party hereto, as Lenders, Citicorp USA, Inc.,
as Collateral Agent, Administrative Agent and
Documentation Agent, Citigroup Global Markets Inc. as
Arranger
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF
1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF
BY THE UNDERSIGNED, THEREUNTO DULY AUTHORIZED.
SOLUTIA INC.
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(Registrant)
/s/Rosemary L. Klein
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Assistant Secretary
DATE: JANUARY 23, 2004