Solutia Inc. and 14 of its U.S. subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.
The decision to file was made to obtain relief from the negative impact caused by legacy liabilities, which include litigation and settlement costs, environmental remediation and Monsanto retiree healthcare obligations that Solutia was required to assume when the company was spun-off from the former Monsanto Co., which is now known as Pharmacia, a wholly owned subsidiary of Pfizer.
In addition, the company has announced a price increase on nylon carpet fiber for the residential carpet market segment. An increase of 10 to 15 percent will become effective for shipments on or after Feb. 1, on unbranded residential nylon staple and bulk continuous filament.
According to Solutia, this increase is to help offset high costs due to geopolitical factors impacting oil and the regional factors impacting natural gas in the United States.