Exhibit 99
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 MAY 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 MAY 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 INCOME ($M): $48
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: June 29, 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 May 2007
- -------------------------------------------------------------------------------
Solutia Inc. $ 263,775,642.93
- -------------------------------------------------------------------------------
Solutia Business Enterprises, Inc. * $ --
- -------------------------------------------------------------------------------
Solutia Systems, Inc. * $ --
- -------------------------------------------------------------------------------
Solutia Overseas, Inc. * $ --
- -------------------------------------------------------------------------------
CPFilms Inc. $ 10,224,613.37
- -------------------------------------------------------------------------------
Solutia Management Company, Inc. * $ --
- -------------------------------------------------------------------------------
Monchem International, Inc. * $ --
- -------------------------------------------------------------------------------
Axio Research Corporation * $ --
- -------------------------------------------------------------------------------
Solutia Investments, LLC $ 200.00
- -------------------------------------------------------------------------------
Beamer Road Management Company * $ --
- -------------------------------------------------------------------------------
Monchem, Inc. * $ --
- -------------------------------------------------------------------------------
Solutia Inter-America, Inc. $ 32,480.99
- -------------------------------------------------------------------------------
Solutia International Holding, LLC $ 200.00
- -------------------------------------------------------------------------------
Solutia Taiwan, Inc. $ 21,195.29
- -------------------------------------------------------------------------------
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 May 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
MAY 31, 2007
------------
TOTAL NET SALES $ 331
TOTAL COST OF GOODS SOLD 289
------------
GROSS PROFIT 42
TOTAL MAT EXPENSE 28
------------
OPERATING INCOME 14
INTEREST EXPENSE (10)
OTHER INCOME, NET 29
REORGANIZATION ITEMS:
Professional fees (5)
Provision for rejected executory contracts -
Employee severance and retention costs -
Adjustment to allowed claim amounts -
Settlements of pre-petition claims -
Other 1
------------
(4)
------------
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES 29
Income tax expense 2
------------
INCOME FROM CONTINUING OPERATIONS 27
Income from discontinued operations, net of tax 33
------------
NET INCOME $ 60
============
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 MAY 31, 2007
(Dollars in
ASSETS millions)
------ -----------
Cash $ 185
Trade Receivables, net 455
Inventories 403
Other Current Assets 234
Assets of Discontinued Operations 26
-----------
TOTAL CURRENT ASSETS 1,303
Property, Plant and Equipment, net 1,024
Intangible Assets, net 152
Other Assets 157
-----------
TOTAL ASSETS $ 2,636
===========
LIABILITIES AND SHAREHOLDERS' DEFICIT
-------------------------------------
Accounts Payable $ 250
Short-Term Debt 990
Other Current Liabilities 257
Liabilities of Discontinued Operations 17
-----------
TOTAL CURRENT LIABILITIES 1,514
Long-Term Debt 368
Other Long-Term Liabilities 320
-----------
TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 2,202
LIABILITIES SUBJECT TO COMPROMISE 1,780
SHAREHOLDERS' DEFICIT (1,346)
-----------
TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $ 2,636
===========
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
MAY 31, 2007
------------
OPERATING ACTIVITIES:
Net income $ 60
Income from Discontinued Operations, net of tax (33)
Depreciation and amortization 10
Restructuring expenses and other unusual items (29)
Changes in assets and liabilities:
Trade receivables (7)
Inventories 13
Accounts payable (27)
Liabilities subject to compromise:
Pension plan liabilities -
Other postretirement benefits liabilities (4)
Other liabilities subject to compromise (1)
Other assets and liabilities 21
------------
NET CASH PROVIDED BEFORE REORGANIZATION ITEMS-CONTINUING OPERATIONS 3
NET CASH USED BEFORE REORGANIZATION ITEMS-DISCONTINUED OPERATIONS (2)
------------
NET CASH PROVIDED BEFORE REORGANIZATION ITEMS 1
OPERATING CASH FLOWS - REORGANIZATION ITEMS:
Professional services fees (5)
Employee severance and retention payments -
Other -
------------
NET CASH USED IN REORGANIZATION ITEMS (5)
------------
NET CASH USED IN OPERATING ACTIVITIES (4)
============
INVESTING ACTIVITIES:
Property, plant and equipment purchases (13)
Net change in Advance to Flexsys Affiliate 150
Acquisition payments for Flexsys less cash acquired (116)
Restricted cash for DIP credit facility paydown (54)
Restricted cash for other purposes (7)
Investment proceeds and property disposals, net 9
------------
NET CASH USED IN INVESTING ACTIVITIES - CONTINUING OPERATIONS (31)
NET CASH PROVIDED BY INVESTING ACTIVITIES - DISCONTINUED OPERATIONS 56
------------
NET CASH PROVIDED BY INVESTING ACTIVITIES 25
============
FINANCING ACTIVITIES:
Net change in revolver debt 38
Deferred debt issuance costs (2)
------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 36
============
NET INCREASE IN CASH AND CASH EQUIVALENTS 57
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 128
------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 185
============
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
MAY 31, 2007
------------
TOTAL NET SALES $ 234
TOTAL COST OF GOODS SOLD 218
------------
GROSS PROFIT 16
TOTAL MAT EXPENSE 18
------------
OPERATING LOSS (2)
INTEREST EXPENSE, NET (9)
OTHER INCOME, NET 34
REORGANIZATION ITEMS:
Professional fees (5)
Provision for rejected executory contracts -
Employee severance and retention costs -
Adjustment to allowed claim amounts -
Settlements of pre-petition claims -
Other 1
------------
(4)
------------
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES 19
Income tax expense -
------------
INCOME FROM CONTINUING OPERATIONS 19
Income from discontinued operations, net of tax 29
------------
NET INCOME $ 48
============
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 MAY 31, 2007
(Dollars in
ASSETS millions)
------ -----------
Cash $ 59
Trade Receivables, net 203
Account Receivables-Unconsolidated Subsidiaries 78
Inventories 185
Other Current Assets 147
Assets of Discontinued Operations 9
-----------
TOTAL CURRENT ASSETS 681
Property, Plant and Equipment, net 655
Investments in Subsidaries and Affiliates 687
Intangible Assets, net 100
Other Assets 58
-----------
TOTAL ASSETS $ 2,181
===========
LIABILITIES AND SHAREHOLDERS' DEFICIT
-------------------------------------
Accounts Payable $ 186
Short-Term Debt 975
Other Current Liabilities 157
Liabilities of Discontinued Operations 31
-----------
TOTAL CURRENT LIABILITIES 1,349
Other Long-Term Liabilities 191
-----------
TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 1,540
LIABILITIES SUBJECT TO COMPROMISE 1,896
SHAREHOLDERS' DEFICIT (1,255)
-----------
TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $ 2,181
===========
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; chemicals for the rubber industry; specialty
products such as 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 Solutia 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, with the most
recent extension being granted through July 30, 2007.
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 fully-drawn term loan; and (b) a $250 borrowing-based revolving credit
facility, which includes a $150 letter of credit subfacility.
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 May 16, 2007, Solutia filed its First Amended Joint Plan of
Reorganization (the "Plan") and the related First Amended Disclosure Statement
(the "Disclosure Statement"). The Plan does not alter the material terms of
the reallocation of Legacy Liabilities set forth (a) in the plan of
reorganization filed on February 14, 2006 (the "Original Plan"), (b) the
Relationship Agreement which will be entered into between Solutia and Monsanto
Company ("Monsanto") upon confirmation of the Plan, or (c) the Retiree
Settlement Agreement entered into among Solutia, the Official Committee of
Unsecured Creditors (the "Unsecured Creditors' Committee), the Official
Committee of Retirees (the "Retirees' Committee") and Monsanto.
The Disclosure Statement contains a description of the events that
led up to the Debtors' bankruptcy filings, the actions the Debtors' have taken
to improve their financial situation while in bankruptcy and a current
description of the Debtors' businesses. The Plan and Disclosure Statement were
furnished as exhibits to a Form 8-K filed on May 22, 2007. The Relationship
Agreement and the Retiree Settlement Agreement were filed with the Bankruptcy
Court on February 21, 2006 as exhibits to the Original Plan and were furnished
as exhibits to a Form 8-K filed on February 21, 2006.
The Plan, which incorporates the Relationship Agreement and Retiree
Settlement Agreement, is subject to approval by the Bankruptcy Court and the
approval of other constituencies in accordance with the U.S. Bankruptcy Code
as well as various other conditions and contingencies, some of which are not
within the control of Solutia, and therefore are subject to change. The
Disclosure Statement remains subject to change pending a hearing in the
Bankruptcy Court to consider the legal adequacy of the Disclosure Statement.
The Bankruptcy Court has scheduled a hearing on July 10, 2007 to consider
approval of the Disclosure Statement. Once the Disclosure Statement is
approved by the Bankruptcy Court, it will be distributed to constituencies
entitled to vote on the Plan. Solutia cannot provide any assurance that any
plan of reorganization ultimately confirmed by the Bankruptcy Court, or any
disclosure statement ultimately approved by the Bankruptcy Court, will be
consistent with the terms of the Plan and Disclosure Statement.
If confirmed, the Plan will provide Solutia with significant relief
from the Legacy Liabilities it was required to assume in the Solutia Spinoff.
These Legacy Liabilities included: (1) retiree medical, retiree life insurance
and retiree disability benefits ("Retiree Welfare Benefits") for those
individuals who retired or became disabled prior to the Solutia Spinoff
("Pre-Spin Retirees"); (2) environmental
11
remediation costs related to activities of the chemicals business of Pharmacia
that occurred prior to the Solutia Spinoff; and (3) toxic tort litigation
costs relating to alleged chemical exposure associated with the activities of
Pharmacia that occurred prior to the Solutia Spinoff.
Under the Plan, Solutia would emerge from bankruptcy as an
independent publicly-held company ("reorganized Solutia"). In order to exit
Chapter 11 successfully, Solutia must propose and obtain confirmation by the
Bankruptcy Court of a plan of reorganization that satisfies the requirements
of the U.S. Bankruptcy Code. Although Solutia has filed the Plan which
provides for Solutia's emergence from bankruptcy as a going concern, there can
be no assurance that the Plan, or any other plan of reorganization, will be
confirmed by the Bankruptcy Court or that any such plan will be implemented
successfully.
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. 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 May 31, 2007, total liquidity for the Solutia Group was
approximately $422 million, consisting of $185 million of cash, revolving
credit facility availability of $55 million, and DIP facility availability of
$182 million. At May 31, 2007, total liquidity for the Solutia Chapter 11
Debtors was approximately $241 million, consisting of $59 million of cash and
DIP facility availability of $182 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 were $29 million for the month ended May 31,
12
2007. These restructuring expenses and other unusual items consisted of (i) a
gain of $7 million associated with the sale of land at the manufacturing
facility in Alvin, Texas and (ii) a settlement gain of $22 million, net of
legal expenses, with FMC Corporation.
Acquisition of Flexsys
- ----------------------
On May 1, 2007, Solutia purchased Akzo Nobel's 50% interest in the
Flexsys joint venture between Solutia and Akzo Nobel for $116 million, net of
cash acquired. To facilitate the acquisition, Solutia advanced to Flexsys $150
million on April 27, 2007. Simultaneous with the purchase of Akzo Nobel's 50%
interest, Flexsys acquired the CRYSTEX(R) manufacturing operations in Japan
for $25 million.
As a result of the acquisition of Akzo Nobel's stake, Flexsys is now
a 100% owned subsidiary of Solutia.
Prior to closing, Flexsys executed a $200 million debt facility
agreement comprised of a $75 million term loan and a $125 million revolving
credit facility. Subsequent to closing, the revolving credit facility was
upsized to $150 million. At May 31, 2007, the outstanding balances of the term
loan and revolving credit facility were $75 million and $95 million,
respectively.
DEQUEST(R) Divestiture
- ----------------------
On May 31, 2007, Solutia sold DEQUEST(R), its water treatment
phosphates business ("Dequest"), to Thermphos Trading GmbH ("Thermphos").
Under the terms of the agreement, Thermphos purchased the assets and assumed
certain liabilities of Dequest for $67 million, subject to a working capital
adjustment. Solutia recorded a gain on the sale of the Dequest business of $35
million. Further, Solutia used $54 million of the net proceeds to pay down its
DIP credit facility.
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 MAY 31, 2007
PRE-PETITION POST-PETITION TOTAL
AMOUNT AMOUNT AMOUNT
-------------- --------------- ---------------
1. GROSS SALARIES AND WAGES 0.00 20,664,646.54 20,664,646.54
2. PAYROLL TAXES WITHHELD 0.00 5,001,294.29 5,001,294.29
3. EMPLOYER PAYROLL TAX CONTRIBUTED 0.00 1,588,791.65 1,588,791.65
4. GROSS TAXABLE SALES 0.00 1,021,674.62 1,021,674.62
5. SALES TAXES COLLECTED / USE TAX PAID 0.00 415,084.95 415,084.95
6. PROPERTY TAXES PAID 0.00 0.00 0.00
7. OTHER TAXES PAID 0.00 149,895.00 149,895.00
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 MAY 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. 05/01/07 - 23,520.97 23,520.97 Employee Payroll Taxes 2
Solutia Inc. 05/02/07 - 87,123.34 87,123.34 Employee Payroll Taxes 2
Solutia Inc. 05/03/07 - 69,829.56 69,829.56 Employee Payroll Taxes 2
Solutia Inc. 05/04/07 - 219,499.72 219,499.72 Employee Payroll Taxes 2
Solutia Inc. 05/09/07 - 92,219.92 92,219.92 Employee Payroll Taxes 2
Solutia Inc. 05/10/07 - 176,371.34 176,371.34 Employee Payroll Taxes 2
Solutia Inc. 05/11/07 - 194,611.40 194,611.40 Employee Payroll Taxes 2
Solutia Inc. 05/15/07 - 1,651,640.25 1,651,640.25 Employee Payroll Taxes 2
Solutia Inc. 05/16/07 - 81,012.61 81,012.61 Employee Payroll Taxes 2
Solutia Inc. 05/17/07 - 73,037.50 73,037.50 Employee Payroll Taxes 2
Solutia Inc. 05/18/07 - 209,511.52 209,511.52 Employee Payroll Taxes 2
Solutia Inc. 05/23/07 - 83,872.12 83,872.12 Employee Payroll Taxes 2
Solutia Inc. 05/24/07 - 190,918.72 190,918.72 Employee Payroll Taxes 2
Solutia Inc. 05/25/07 - 196,763.72 196,763.72 Employee Payroll Taxes 2
Solutia Inc. 05/30/07 - 81,406.42 81,406.42 Employee Payroll Taxes 2
Solutia Inc. 05/31/07 - 1,717,933.79 1,717,933.79 Employee Payroll Taxes 2
Solutia Inc. 05/01/07 - 118.83 118.83 Employer Payroll Taxes 3
Solutia Inc. 05/02/07 - 25,959.97 25,959.97 Employer Payroll Taxes 3
Solutia Inc. 05/03/07 - 21,848.50 21,848.50 Employer Payroll Taxes 3
Solutia Inc. 05/04/07 - 46,090.25 46,090.25 Employer Payroll Taxes 3
Solutia Inc. 05/09/07 - 26,371.72 26,371.72 Employer Payroll Taxes 3
Solutia Inc. 05/10/07 - 59,453.16 59,453.16 Employer Payroll Taxes 3
Solutia Inc. 05/11/07 - 48,270.00 48,270.00 Employer Payroll Taxes 3
Solutia Inc. 05/15/07 - 560,811.33 560,811.33 Employer Payroll Taxes 3
Solutia Inc. 05/16/07 - 23,304.49 23,304.49 Employer Payroll Taxes 3
Solutia Inc. 05/17/07 - 22,408.89 22,408.89 Employer Payroll Taxes 3
Solutia Inc. 05/18/07 - 46,459.62 46,459.62 Employer Payroll Taxes 3
Solutia Inc. 05/23/07 - 25,317.45 25,317.45 Employer Payroll Taxes 3
Solutia Inc. 05/24/07 - 63,057.86 63,057.86 Employer Payroll Taxes 3
Solutia Inc. 05/25/07 - 46,439.23 46,439.23 Employer Payroll Taxes 3
Solutia Inc. 05/30/07 - 24,598.63 24,598.63 Employer Payroll Taxes 3
Solutia Inc. 05/31/07 - 582,328.91 582,328.91 Employer Payroll Taxes 3
CPFilms Inc. 05/31/07 - 52,036.60 52,036.60 Sales & Use 5
Solutia Inc. 05/18/07 - 363,048.35 363,048.35 Sales/Use Tax 5
Solutia Inc. 05/31/07 - 200.00 200.00 Business License 7
Solutia Inc. 05/23/07 - 66,000.00 66,000.00 Franchise Tax 7
Solutia Investments, LLC 05/16/07 - 200.00 200.00 Franchise Tax 7
Solutia International Holding, LLC 05/16/07 - 200.00 200.00 Franchise Tax 7
Solutia Inc. 05/21/07 - 66,000.00 66,000.00 Other-Franchise 7
Solutia Inc. 05/15/07 - 17,295.00 17,295.00 Other-Income Tax 7
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