EXHIBIT 99.1
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[Solutia logo] NEWS
SOLUTIA INC.
575 Maryville Centre Drive
St. Louis, Missouri 63141
P.O. Box 66760
St. Louis, Missouri 63166-6760
FOR IMMEDIATE RELEASE
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MEDIA: Dan Jenkins (314) 674-8552
INVESTORS: Tim Spihlman (314) 674-5206
SOLUTIA RECEIVES FULLY UNDERWRITTEN COMMITMENT
TO EXTEND AND INCREASE DEBTOR-IN-POSSESSION FINANCING
ST. LOUIS - DECEMBER 15, 2006 -- Solutia Inc. (OTCBB: SOLUQ), a leading
manufacturer and provider of interlayers for laminated glass, aftermarket
window films, specialty chemicals and an integrated family of nylon products,
today announced it has received a fully underwritten commitment for $1.075
billion of debtor-in-possession (DIP) financing, maturing March 31, 2008. This
represents a $250 million increase and a one-year extension over Solutia's
current DIP financing. The increased availability under the DIP financing
provides Solutia with further liquidity for operations and the ability to fund
mandatory pension payments that come due in 2007. The agreement also allows
for Solutia to purchase Akzo Nobel's stake in Flexsys, the 50%/50% joint
venture between Azko Nobel and Solutia. (In a separate press release, Solutia
today announced it has reached an agreement in principle to purchase Akzo
Nobel's 50 percent stake in Flexsys.) To facilitate the Flexsys acquisition,
up to $150 million of additional funds could be raised under this DIP
financing through an accordion feature, bringing the total to
$1.225 billion. The DIP financing can be repaid by Solutia at any time without
prepayment penalties. Citigroup is acting as lead arranger.
This amendment requires the approval of the United States Bankruptcy
Court for the Southern District of New York.
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FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements, which can be
identified by the use of words such as "believes," "expects," "may," "will,"
"intends," "plans," "estimates" or "anticipates," or other comparable
terminology, or by discussions of strategy, plans or intentions. These
statements are based on management's current expectations and assumptions
about the industries in which Solutia operates. Forward-looking statements are
not guarantees of future performance and are subject to significant risks and
uncertainties that may cause actual results or achievements to be materially
different from the future results or achievements expressed or implied by the
forward-looking statements. These risks and uncertainties include, but are not
limited to, those described in Solutia's most recent Annual Report on Form
10-K, under "Cautionary Statement About Forward Looking Statements," Solutia's
quarterly reports on Form 10-Q, and in filings with the U.S. Bankruptcy Court
in connection with the Chapter 11 case of Solutia Inc. and 14 of its U.S.
subsidiaries. These reports can be accessed through the "Investors" section of
Solutia's website at www.solutia.com. The bankruptcy court filings can be
accessed by visiting www.trumbullgroup.com. Solutia disclaims any intent or
obligation to update or revise any forward-looking statements in response to
new information, unforeseen events, changed circumstances or any other
occurrence.
CORPORATE PROFILE
Solutia (http://www.Solutia.com) uses world-class skills in applied
chemistry to create value-added solutions for customers, whose products
improve the lives of consumers every day. Solutia is a world leader in
performance films for laminated safety glass and after-market applications;
specialties such as water treatment chemicals, heat transfer fluids and
aviation hydraulic fluid and an integrated family of nylon products including
high-performance polymers and fibers.
Solutia ... Solutions for a Better Life.
SOURCE: SOLUTIA INC.
ST. LOUIS
12/15/06
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