St. Louis, Missouri
February 28, 2008
Monsanto (NYSE: MON) today welcomed Solutia's emergence from
bankruptcy, which signals an opportunity for Solutia to move
forward and represents a positive resolution to Monsanto's
involvement in the bankruptcy process.
"Throughout this process, our primary goal has been the
successful emergence of a viable Solutia," said Terry Crews,
Monsanto's chief financial officer.
"We are pleased to see the resolution of this matter for both
Solutia and the St. Louis community, and we are encouraged that
Solutia retirees now have greater clarity and protection of
their rights."
As part of Solutia's emergence from bankruptcy and in accordance
with the reorganization plan, Monsanto anticipates that it will
realize a non-recurring gain (net of tax) of approximately $0.22
to $0.24 per share in second quarter 2008 for the settlement of
Monsanto's claims. Cash received as a result of the resolution
will be additive to the company's free cash flow.
Under the resolution of this matter and in recognition of its
claims and contributions regarding the reorganized business,
Monsanto will receive cash of approximately $162 million and
approximately 2.5 million shares of new Solutia common stock,
resulting in less than 5 percent ownership interest.
The consideration received will represent a settlement of its
claims, including certain administrative and environmental
remediation expenses incurred throughout the bankruptcy process.
Monsanto Company is a leading global provider of
technology-based solutions and agricultural products that
improve farm productivity and food quality. |
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