The Wall Street Journal-20080123-Solutia Inc-- Settlement Is Reached For --36-220-5 Million

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Solutia Inc.: Settlement Is Reached For $220.5 Million

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Solutia Inc. agreed to pay a group of bondholders $220.5 million to settle a dispute over unpaid interest that could have complicated the company's business plans after its exit from bankruptcy protection. In papers filed with the U.S. Bankruptcy Court in Manhattan, the chemical company said the settlement, payable upon its emergence from Chapter 11 protection, allows it to avoid keeping $37.5 million in reserve while awaiting the outcome of litigation with the holders of its 11.25% senior notes.