Approval of Solutia Reorganization Plan is Great News, Monsanto Says

"As weve said from the beginning, our goals have to been to see an economically viable Solutia emerge from bankruptcy, via a plan that protects the interests of retirees while assuring that Monsanto obtains finality in a fair resolution in the best interests of Monsantos shareowners," said David F. Snively, Senior Vice President, Secretary and General Counsel for Monsanto. "The exit plan approved today accomplishes all of our goals."

Today, U.S. Bankruptcy Court Judge Prudence Carter Beatty gave final approval to the reorganization plan submitted by Solutia in September. The company filed for bankruptcy protection on Dec. 17, 2003.

Solutia was spun off as a separate chemical company in 1997 by Pharmacia Corp. (the original company named "Monsanto"). Pharmacia created a new company eventually spun off as an agricultural businesses under the name "Monsanto" in 2002. As part of Pharmacias spin-off agreement, the new Monsanto assumed liability for certain obligations if Solutia failed to perform them.

Under the Solutia reorganization plan approved by the court, Monsanto will receive value in the newly reorganized Solutia and on behalf of Pharmacia will assume post-bankruptcy responsibility for designated environmental and litigation responsibilities, and continues to share responsibility with Solutia for remediation programs at specified sites.