KIRKLAND & ELLIS LLP
Citigroup Center
153 East 53rd Street
New York, New York 10022-4675
Telephone: (212) 446-4800
Facsimile: (212) 446-4900
Richard M. Cieri (RC-6062)
Jonathan S. Henes (JH-1979)
Attorneys for the Debtors and Debtors in Possession
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
- -------------------------------------------------------x
:
In re : Chapter 11
:
SOLUTIA INC., ET AL., : Case No. 03-17949 (PCB)
:
Debtors. : (Jointly Administered)
:
- -------------------------------------------------------x
THIS MONTHLY OPERATING STATEMENT APPLIES TO:
X All Debtors Axio Research Corporation
- --- ---
Solutia Inc. Solutia Investments, LLC
- --- ---
Solutia Business Enterprises, Inc. Beamer Road Management Company
- --- ---
Solutia Systems, Inc. Monchem, Inc.
- --- ---
Solutia Overseas, Inc. Solutia Inter-America, Inc.
- --- ---
CPFilms Inc. Solutia International Holding, LLC
- --- ---
Solutia Management Company, Inc. Solutia Taiwan, Inc.
- --- ---
Monchem International, Inc. Solutia Greater China, Inc.
- --- ---
MONTHLY OPERATING STATEMENT FOR THE
MONTH OF MARCH 2007 (1)
-----------------------
<FN>
(1) The information contained in the Debtors' monthly operating report
(the "MOR") is unaudited and is limited to the time period indicated
and is presented in a format prescribed by the bankruptcy court. The
MOR does not purport to represent financial statements prepared in
accordance with GAAP nor is it intended to fully reconcile to the
financial statements filed by Solutia Inc. with the Securities and
Exchange Commission. Additionally, while every effort has been made to
assure its accuracy and completeness, errors or omissions may have
inadvertently occurred and the Debtors reserve the right to amend
their MOR as necessary.
1
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
- -------------------------------------------------------x
:
In re : Chapter 11
:
SOLUTIA INC., ET AL., : Case No. 03-17949 (PCB)
:
Debtors. : (Jointly Administered)
:
- -------------------------------------------------------x
MONTHLY OPERATING STATEMENT FOR THE
MONTH OF MARCH 2007
-------------------
DEBTORS' ADDRESS: 575 Maryville Centre Dr.
St. Louis, MO 63141
DEBTORS' ATTORNEY: KIRKLAND & ELLIS LLP
Richard M. Cieri (RC-6062)
Jonathan S. Henes (JH-1979)
Citigroup Center
153 East 53rd Street
New York, New York 10022-4675
CURRENT MONTH NET LOSS ($M): $ 3
REPORT PREPARER: Timothy J. Spihlman
THIS OPERATING STATEMENT MUST BE SIGNED BY A REPRESENTATIVE OF THE DEBTORS
The undersigned, having reviewed the attached report and being familiar with
the Debtors' financial affairs verifies, under penalty of perjury, that the
information contained herein is complete, accurate and truthful to the best of
my knowledge.
DATE: April 30, 2007 /s/ Timothy J. Spihlman
-----------------------
Timothy J. Spihlman
Vice President and Controller
Indicate if this is an amended statement by checking here: _______
2
SOLUTIA INC., ET AL.
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
MONTHLY DISBURSEMENTS BY DEBTOR
For the Month of March 2007
- -------------------------------------------------------------------------------
Solutia Inc. $ 277,538,677.00
- -------------------------------------------------------------------------------
Solutia Business Enterprises, Inc. $ 100.00
- -------------------------------------------------------------------------------
Solutia Systems, Inc. * $--
- -------------------------------------------------------------------------------
Solutia Overseas, Inc. * $--
- -------------------------------------------------------------------------------
CPFilms Inc. $ 11,987,755.25
- -------------------------------------------------------------------------------
Solutia Management Company, Inc. * $--
- -------------------------------------------------------------------------------
Monchem International, Inc. * $--
- -------------------------------------------------------------------------------
Axio Research Corporation * $--
- -------------------------------------------------------------------------------
Solutia Investments, LLC * $--
- -------------------------------------------------------------------------------
Beamer Road Management Company * $--
- -------------------------------------------------------------------------------
Monchem, Inc. * $--
- -------------------------------------------------------------------------------
Solutia Inter-America, Inc. $ 42,982.02
- -------------------------------------------------------------------------------
Solutia International Holding, LLC * $--
- -------------------------------------------------------------------------------
Solutia Taiwan, Inc. $ 20,890.26
- -------------------------------------------------------------------------------
Solutia Greater China, Inc. * $--
- -------------------------------------------------------------------------------
<FN>
* These non-operating debtors had no constructive disbursements made on their
behalf.
3
SOLUTIA INC., ET AL.
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
STATEMENT ON INSURANCE
For the Month of March 2007
All insurance policy premiums due, including those for workers
compensation and disability insurance, have been paid and all the policies
remain in effect.
4
SOLUTIA INC., ET AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
SOLUTIA GROUP*
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(DOLLARS IN MILLIONS)
MONTH ENDED THREE MONTHS ENDED
MARCH 31, 2007 MARCH 31, 2007
-------------- ------------------
TOTAL NET SALES $ 259 $ 727
TOTAL COST OF GOODS SOLD 219 621
-------------- ------------------
GROSS PROFIT 40 106
TOTAL MAT EXPENSE 24 67
-------------- ------------------
OPERATING INCOME 16 39
EQUITY EARNINGS FROM AFFILIATES 3 9
INTEREST EXPENSE (6) (29)
OTHER INCOME, NET 2 3
LOSS ON DEBT MODIFICATION (7) (7)
REORGANIZATION ITEMS:
Professional fees (7) (15)
Provision for rejected executory contracts - -
Employee severance and retention costs - (1)
Adjustment to allowed claim amounts - -
Settlements of pre-petition claims - -
Other - -
-------------- ------------------
(7) (16)
-------------- ------------------
INCOME (LOSS) BEFORE TAXES 1 (1)
Income tax expense 3 7
-------------- ------------------
NET LOSS $ (2) $ (8)
============== ==================
See Accompanying Notes to Consolidated Financial Statements.
<FN>
* Includes non-U.S. subsidiaries of the Solutia Inc. corporate organization
that did not commence Chapter 11 cases.
5
SOLUTIA INC., ET AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
SOLUTIA GROUP*
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
AS OF MARCH 31, 2007
(Dollars in
ASSETS millions)
------ ---------
Cash $ 168
Trade Receivables, net 337
Inventories 314
Other Current Assets 292
---------
TOTAL CURRENT ASSETS 1,111
Property, Plant and Equipment, net 801
Investments in Affiliates 198
Intangible Assets, net 120
Other Assets 100
---------
TOTAL ASSETS $ 2,330
=========
LIABILITIES AND SHAREHOLDERS' DEFICIT
-------------------------------------
Accounts Payable $ 243
Short-Term Debt 975
Other Current Liabilities 216
---------
TOTAL CURRENT LIABILITIES 1,434
Long-Term Debt 213
Other Long-Term Liabilities 289
---------
TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 1,936
LIABILITIES SUBJECT TO COMPROMISE 1,807
SHAREHOLDERS' DEFICIT (1,413)
---------
TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $ 2,330
=========
See Accompanying Notes to Consolidated Financial Statements.
<FN>
* Includes non-U.S. subsidiaries of the Solutia Inc. corporate organization
that did not commence Chapter 11 cases.
6
SOLUTIA INC., ET AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
SOLUTIA GROUP*
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(DOLLARS IN MILLIONS)
MONTH ENDED THREE MONTHS ENDED
MARCH 31, 2007 MARCH 31, 2007
-------------- ------------------
OPERATING ACTIVITIES:
Net loss $ (2) $ (8)
Depreciation and amortization 8 25
Restructuring expenses and other unusual items 2 7
Changes in assets and liabilities:
Trade receivables (9) (49)
Inventories (27) (40)
Accounts payable 40 22
Liabilities subject to compromise:
Pension plan liabilities - (29)
Other postretirement benefits liabilities (5) (12)
Other liabilities subject to compromise - (1)
Other assets and liabilities (15) (15)
-------------- ------------------
NET CASH USED BEFORE REORGANIZATION ITEMS (8) (100)
OPERATING CASH FLOWS - REORGANIZATION ITEMS:
Professional services fees (7) (16)
Employee severance and retention payments - (1)
Other - (2)
-------------- ------------------
NET CASH USED IN REORGANIZATION ITEMS (7) (19)
-------------- ------------------
NET CASH USED IN OPERATING ACTIVITIES (15) (119)
============== ==================
INVESTING ACTIVITIES:
Property, plant and equipment purchases (20) (36)
Restricted cash for acquisition - (150)
Investment proceeds and property disposals, net 4 4
-------------- ------------------
NET CASH USED IN INVESTING ACTIVITIES - CONTINUING OPERATIONS (16) (182)
NET CASH USED IN INVESTING ACTIVITIES - DISCONTINUED OPERATIONS (1) (1)
-------------- ------------------
NET CASH USED IN INVESTING ACTIVITIES (17) (183)
============== ==================
FINANCING ACTIVITIES:
Net change in short-term debt obligations - 325
Debt issuance costs - (5)
-------------- ------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES - 320
============== ==================
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (32) 18
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 200 150
-------------- ------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 168 $ 168
============== ==================
See Accompanying Notes to Consolidated Financial Statements.
<FN>
* Includes non-U.S. subsidiaries of the Solutia Inc. corporate organization
that did not commence Chapter 11 cases.
7
SOLUTIA INC., ET AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
SOLUTIA CHAPTER 11 DEBTORS
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(DOLLARS IN MILLIONS)
MONTH ENDED THREE MONTHS ENDED
MARCH 31, 2007 MARCH 31, 2007
-------------- ------------------
TOTAL NET SALES $ 215 $ 603
TOTAL COST OF GOODS SOLD 189 537
-------------- ------------------
GROSS PROFIT 26 66
TOTAL MAT EXPENSE 18 51
-------------- ------------------
OPERATING INCOME 8 15
EQUITY EARNINGS FROM AFFILIATES 3 9
INTEREST EXPENSE, NET (4) (26)
OTHER INCOME, NET 4 10
LOSS ON DEBT MODIFICATION (7) (7)
REORGANIZATION ITEMS:
Professional fees (6) (14)
Provision for rejected executory contracts - -
Employee severance and retention costs - (1)
Adjustment to allowed claim amounts - -
Settlements of pre-petition claims - -
Other - -
-------------- ------------------
(6) (15)
-------------- ------------------
LOSS BEFORE TAXES (2) (14)
Income tax expense 1 1
-------------- ------------------
NET LOSS $ (3) $ (15)
============== ==================
See Accompanying Notes to Consolidated Financial Statements.
8
SOLUTIA INC., ET AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
SOLUTIA CHAPTER 11 DEBTORS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
AS OF MARCH 31, 2007
(Dollars in
ASSETS millions)
------ ---------
Cash $ 26
Trade Receivables, net 195
Account Receivables-Unconsolidated Subsidiaries 77
Inventories 201
Other Current Assets 245
---------
TOTAL CURRENT ASSETS 744
Property, Plant and Equipment, net 661
Investments in Subsidiaries and Affiliates 571
Intangible Assets, net 100
Other Assets 59
---------
TOTAL ASSETS $ 2,135
=========
LIABILITIES AND SHAREHOLDERS' DEFICIT
-------------------------------------
Accounts Payable $ 205
Short-Term Debt 975
Other Current Liabilities 146
---------
TOTAL CURRENT LIABILITIES 1,326
Other Long-Term Liabilities 193
---------
TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 1,519
LIABILITIES SUBJECT TO COMPROMISE 1,922
SHAREHOLDERS' DEFICIT (1,306)
---------
TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $ 2,135
=========
See Accompanying Notes to Consolidated Financial Statements.
9
SOLUTIA INC., ET AL.
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. NATURE OF OPERATIONS AND BANKRUPTCY PROCEEDINGS
Nature of Operations
Solutia Inc., together with its subsidiaries (referred to herein as
"Solutia", the "Solutia Group" or the "Company"), is a global manufacturer and
marketer of a variety of high-performance chemical-based materials. Solutia is
a world leader in performance films for laminated safety glass and
after-market applications; specialty products such as water treatment
chemicals, heat transfer fluids and aviation hydraulic fluids; and an
integrated family of nylon products including high-performance polymers and
fibers.
Prior to September 1, 1997, Solutia was a wholly-owned subsidiary of
the former Monsanto Company (now known as Pharmacia Corporation, a
wholly-owned subsidiary of Pfizer, Inc. ("Pharmacia")). On September 1, 1997,
Pharmacia distributed all of the outstanding shares of common stock of Solutia
as a dividend to Pharmacia stockholders (the "Solutia Spinoff"). As a result
of the Solutia Spinoff, on September 1, 1997, Solutia became an independent
publicly held company and its operations ceased to be owned by Pharmacia. A
net deficiency of assets of $113 million resulted from the spinoff.
Proceedings Under Chapter 11 of the Bankruptcy Code
On December 17, 2003, Solutia Inc. and its 14 U.S. subsidiaries (the
"Debtors") filed voluntary petitions for reorganization under Chapter 11 of
the U.S. Bankruptcy Code (the "Chapter 11 Cases") in the U.S. Bankruptcy Court
for the Southern District of New York (the "Bankruptcy Court"). The cases were
consolidated for the purpose of joint administration and were assigned case
number 03-17949 (PCB). Solutia's subsidiaries outside the United States were
not included in the Chapter 11 filing.
The filing was made to restructure Solutia's balance sheet, to
streamline operations and to reduce costs, in order to allow Solutia to emerge
from Chapter 11 as a viable going concern. The filing also was made to obtain
relief from the negative financial impact of liabilities for litigation,
environmental remediation and certain post-retirement benefits (the "Legacy
Liabilities") and liabilities under operating contracts, all of which were
assumed at the time of the Solutia Spinoff. These factors, combined with the
weakened state of the chemical manufacturing sector, general economic
conditions and continuing high, volatile energy and crude oil costs were an
obstacle to Solutia's financial stability and success.
Under Chapter 11, Solutia is operating its businesses as a
debtor-in-possession ("DIP") under court protection from creditors and
claimants. Since the Chapter 11 filing, orders sufficient to enable Solutia to
conduct normal business activities, including the approval of Solutia's DIP
financing, have been entered by the Bankruptcy Court. While Solutia is subject
to Chapter 11, all transactions not in the ordinary course of business require
the prior approval of the Bankruptcy Court. Under the U.S. Bankruptcy Code,
Solutia had the exclusive right to propose a plan of reorganization for 120
days following the Chapter 11 filing date. The Bankruptcy Court has
subsequently approved extensions of this exclusivity period. The exclusivity
period continues until the order disposing of the current motion is entered on
the Bankruptcy Court's docket.
10
On January 16, 2004, pursuant to authorization from the Bankruptcy
Court, Solutia entered into a DIP credit facility. This DIP credit facility
has subsequently been amended from time to time, with Bankruptcy Court
approval. The DIP credit facility, as amended, currently consists of: (a) a
$975 million fully-drawn term loan; and (b) a $250 million borrowing-based
revolving credit facility, which includes a $150 million letter of credit
subfacility. Of the $1,225 million facility, $150 million must be used to
finance the acquisition of Akzo Nobel's 50% interest in the Flexsys joint
venture between Solutia and Akzo Nobel. In the event the acquisition is not
closed by May 25, 2007, Solutia is required to repay the funds to the lenders.
As a consequence of the Chapter 11 filing, pending litigation against
Solutia is generally stayed, and no party may take any action to collect its
pre-petition claims except pursuant to an order of the Bankruptcy Court.
November 30, 2004 was the last date by which holders of pre-petition date
claims against the Debtors could file such claims. Any holder of a claim that
was required to file such claim by November 30, 2004, and did not do so, may
be barred from asserting such claim against the Debtors and, accordingly, may
not be able to participate in any distribution on account of such claim.
Differences between claim amounts identified by the Debtors and claims filed
by claimants will be investigated and resolved in connection with the Debtors'
claims resolution process, and only holders of claims that are ultimately
allowed for purposes of the Chapter 11 case will be entitled to distributions.
Solutia has not yet fully completed its analysis of all the proofs of claim.
Since the settlement terms of allowed claims are subject to a confirmed plan
of reorganization, the ultimate distribution with respect to allowed claims is
not presently ascertainable.
On February 14, 2006, the Debtors filed with the Bankruptcy Court a
Plan of Reorganization (the "Plan") and Disclosure Statement (the "Disclosure
Statement"). The Plan and Disclosure Statement along with the Relationship
Agreement (as defined below) and the Retiree Settlement Agreement, entered
into among Solutia, the Official Committee of Unsecured Creditors (the
"Unsecured Creditors' Committee") and Official Committee of Retirees appointed
in the Chapter 11 Cases (the "Retirees' Committee"), Monsanto Company
("Monsanto"), certain retirees and the other parties thereto (the "Retiree
Settlement"), set forth the terms of a global settlement (the "Global
Settlement") between Solutia, the Unsecured Creditors' Committee, the
Retirees' Committee, Monsanto and Pharmacia. The Global Settlement provides
for, among other things, a reallocation of certain Legacy Liabilities among
Solutia, Monsanto and Pharmacia and the treatment that various constituencies
in the Chapter 11 Cases would receive under the Plan. The reallocation of
liabilities between Solutia and Monsanto is set forth in a Relationship
Agreement (the "Relationship Agreement") which would be entered into between
Solutia and Monsanto upon confirmation of the Plan. Since the February 14,
2006 filing, the Bankruptcy Court has not moved forward with the process to
approve the Disclosure Statement and confirm the Plan.
There are two adversary proceedings ongoing in our Chapter 11 case.
JPMorgan Chase National Bank N.A., as indenture trustee of Solutia's
debentures due 2027 and 2037, filed litigation against Solutia claiming that
such debentures are entitled to secured status as opposed to general unsecured
status as set forth in the Plan. In addition, the Official Committee of Equity
Security Holders ("Equity Committee") in Solutia's bankruptcy case has filed
litigation against Pharmacia and Monsanto, arguing that holders of Solutia's
existing equity are entitled to a distribution in the Chapter 11 case.
Solutia is in discussions with the major stakeholders in our Chapter
11 case in an effort to modify the Global Settlement and Plan and achieve a
confirmable Plan. In addition, Solutia continues to evaluate and explore all
other reasonable alternatives to reorganize the Company, such as a sale of the
reorganized Company's equity or a sale of certain of its businesses or assets
that may present a means of maximizing the value of the estate for
stakeholders.
11
Basis of Consolidation
The consolidated financial statements of the Solutia Group include
the accounts of Solutia Inc. and its majority-owned U.S. and non-U.S.
subsidiaries. The non-U.S. subsidiaries did not commence Chapter 11 cases. The
consolidated financial statements of the Solutia Chapter 11 Debtors include
the accounts of Solutia Inc. and its majority-owned U.S. subsidiaries, with
investments in non-U.S. subsidiaries accounted for on the cost basis. In each
case, all significant intercompany transactions and balances have been
eliminated in consolidation. Companies in which Solutia has a significant
interest but not a controlling interest are accounted for under the equity
method of accounting and included in investments in subsidiaries and
affiliates in the consolidated statement of financial position. Solutia's
proportionate share of these companies' net earnings or losses is reflected in
equity earnings (loss) from affiliates in the consolidated statement of
operations. In accordance with Financial Accounting Standards Board
Interpretation No. 46, Consolidation of Variable Interest Entities, variable
interest entities in which Solutia is the primary beneficiary are consolidated
within the consolidated financial statements.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles in the United States of America have been condensed or omitted for
purposes of this Operating Report. The consolidated statement of operations
for any interim period is not necessarily indicative of the results that may
be expected for a quarter, full year, or any future interim period.
Liquidity
At March 31, 2007, total liquidity for the Solutia Group was
approximately $347 million, consisting of $168 million of cash and DIP
facility availability of $179 million. At March 31, 2007, total liquidity for
the Solutia Chapter 11 Debtors was approximately $205 million, consisting of
$26 million of cash and DIP facility availability of $179 million.
2. SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies are consistent with those listed
in the Company's 2006 Annual Report on Form 10-K filed with the Securities and
Exchange Commission on March 6, 2007.
3. SUPPLEMENTAL INFORMATION - CONSOLIDATED STATEMENT OF CASH FLOWS
Restructuring Expenses and Other Unusual Items
- ----------------------------------------------
Restructuring expenses and other unusual items included in the
consolidated statement of operations and the consolidated statement of cash
flows for the three months ended March 31, 2007 included a charge of $5
million associated with the January 2007 DIP amendment that resulted from the
write-off of debt issuance costs and to record the DIP facility as modified at
its fair value. Of the $7 million charge, $2 million related to debt issuance
costs associated with the $150 million of restricted cash, as described below,
was recorded in the month ended March 31, 2007. The debt issuance costs were
payable upon the approval of the pending Flexsys acquisition by the Bankruptcy
Court, which occurred on April 11, 2007.
Restricted Cash for Acquisition
- -------------------------------
Restricted cash for acquisition included in the consolidated
statement of cash flows relates to the portion of the DIP credit facility that
has been restricted for a special purpose by the amendment (as more fully
described in Note 1). Of the $1,225 million facility, $150 million must be
used to finance the acquisition of Akzo Nobel's 50% interest in the Flexsys
joint venture between Solutia and Akzo Nobel. In the event the acquisition is
not closed by May 25, 2007, Solutia is required to repay the funds to the
lenders. The $150 is currently invested in cash and cash equivalents.
12
4. SUPPLEMENTAL INFORMATION - YEAR-TO-DATE RESULTS OF OPERATIONS
Solutia's net sales for the three months ended March 31, 2007
increased $49 million, or 7 percent, as compared to the three months ended
March 31, 2006 primarily due to higher average selling prices of 3 percent,
higher sales volumes of 3 percent, and favorable currency exchange rate
fluctuations of 1 percent. The $25 million increase in operating income as
compared to the first quarter 2006 resulted from higher net sales and lower
charges, partially offset by higher raw material and energy costs of $9
million.
13
SOLUTIA INC., ET AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
SOLUTIA CHAPTER 11 DEBTORS
SCHEDULE OF FEDERAL, STATE AND LOCAL TAXES COLLECTED, WITHHELD OR PAID
MONTH ENDED MARCH 31, 2007
PRE-PETITION POST-PETITION TOTAL
AMOUNT AMOUNT AMOUNT
-------------- -------------- --------------
1. GROSS SALARIES AND WAGES 0.00 38,266,522.74 38,266,522.74
2. PAYROLL TAXES WITHHELD 0.00 11,243,335.82 11,243,335.82
3. EMPLOYER PAYROLL TAX CONTRIBUTED 0.00 2,920,406.10 2,920,406.10
4. GROSS TAXABLE SALES 0.00 928,013.79 928,013.79
5. SALES TAXES COLLECTED / USE TAX PAID 0.00 317,588.00 317,588.00
6. PROPERTY TAXES PAID 0.00 0.00 0.00
7. OTHER TAXES PAID 0.00 745.00 745.00
14
SOLUTIA INC., ET AL.,
Case Nos. 03-17948 (PCB) through 03-17962 (PCB)
(Debtors in Possession)
SOLUTIA CHAPTER 11 DEBTORS
SCHEDULE OF FEDERAL, STATE AND LOCAL TAXES COLLECTED, WITHHELD OR PAID
MONTH ENDED MARCH 31, 2007
DATES AND AMOUNTS PAID TO TAXING AGENCIES (ITEMS 2, 3, 5, 6, 7)
PRE-PETITION POST-PETITION TOTAL ITEM
DEBTOR ENTITY DATE AMOUNT AMOUNT AMOUNT TYPE OF TAX NUMBER
- ------------------------------------------------------------------------------------------------------------------------------------
Solutia Inc. 03/01/07 0.00 264,710.34 264,710.34 Employee Payroll Taxes 2
Solutia Inc. 03/02/07 0.00 208,274.17 208,274.17 Employee Payroll Taxes 2
Solutia Inc. 03/07/07 0.00 83,144.56 83,144.56 Employee Payroll Taxes 2
Solutia Inc. 03/08/07 0.00 71,458.65 71,458.65 Employee Payroll Taxes 2
Solutia Inc. 03/09/07 0.00 197,958.00 197,958.00 Employee Payroll Taxes 2
Solutia Inc. 03/14/07 0.00 83,838.10 83,838.10 Employee Payroll Taxes 2
Solutia Inc. 03/15/07 0.00 7,832,139.76 7,832,139.76 Employee Payroll Taxes 2
Solutia Inc. 03/16/07 0.00 151,360.04 151,360.04 Employee Payroll Taxes 2
Solutia Inc. 03/20/07 0.00 594.86 594.86 Employee Payroll Taxes 2
Solutia Inc. 03/21/07 0.00 94,367.68 94,367.68 Employee Payroll Taxes 2
Solutia Inc. 03/22/07 0.00 71,222.78 71,222.78 Employee Payroll Taxes 2
Solutia Inc. 03/23/07 0.00 193,041.32 193,041.32 Employee Payroll Taxes 2
Solutia Inc. 03/28/07 0.00 82,930.01 82,930.01 Employee Payroll Taxes 2
Solutia Inc. 03/29/07 0.00 191,476.97 191,476.97 Employee Payroll Taxes 2
Solutia Inc. 03/30/07 0.00 1,897,912.66 1,897,912.66 Employee Payroll Taxes 2
Solutia Inc. 03/01/07 0.00 69,932.85 69,932.85 Employer Payroll Taxes 3
Solutia Inc. 03/02/07 0.00 49,342.08 49,342.08 Employer Payroll Taxes 3
Solutia Inc. 03/07/07 0.00 25,675.87 25,675.87 Employer Payroll Taxes 3
Solutia Inc. 03/08/07 0.00 21,963.30 21,963.30 Employer Payroll Taxes 3
Solutia Inc. 03/09/07 0.00 47,387.53 47,387.53 Employer Payroll Taxes 3
Solutia Inc. 03/14/07 0.00 25,292.21 25,292.21 Employer Payroll Taxes 3
Solutia Inc. 03/15/07 0.00 1,835,140.45 1,835,140.45 Employer Payroll Taxes 3
Solutia Inc. 03/16/07 0.00 35,971.17 35,971.17 Employer Payroll Taxes 3
Solutia Inc. 03/20/07 0.00 148.40 148.40 Employer Payroll Taxes 3
Solutia Inc. 03/21/07 0.00 27,725.96 27,725.96 Employer Payroll Taxes 3
Solutia Inc. 03/22/07 0.00 21,957.18 21,957.18 Employer Payroll Taxes 3
Solutia Inc. 03/23/07 0.00 45,522.55 45,522.55 Employer Payroll Taxes 3
Solutia Inc. 03/28/07 0.00 25,634.84 25,634.84 Employer Payroll Taxes 3
Solutia Inc. 03/29/07 0.00 63,231.59 63,231.59 Employer Payroll Taxes 3
Solutia Inc. 03/30/07 0.00 623,476.88 623,476.88 Employer Payroll Taxes 3
Solutia Inc. 03/20/07 0.00 276,571.98 276,571.98 Sales/Use Tax Payments 5
CPFilms Inc. 03/31/07 0.00 41,016.02 41,016.02 Sales & Use 5
Solutia Inc. 03/12/07 0.00 340.00 340.00 Annual Reports 7
Solutia Businees Enterprises 03/14/07 0.00 100.00 100.00 Other-Franchise 7
Solutia Inc. 03/14/07 0.00 110.00 110.00 Other-Franchise 7
Solutia Inc. 03/29/07 0.00 195.00 195.00 Annual Reports 7
15