On Tuesday, June 7, both Monsanto and Solutia issued press releases stating that they, along with the Official Committee of Unsecured Creditors, had reached an "agreement-in-principle" regarding Solutia's reorganization. These press releases can be read at Monsanto.com and Solutia.com. Of importance to retirees is that Monsanto will underwrite a $250 million equity infusion into the new reorganized Solutia to support retiree benefits and certain environmental liabilities. $150 million of that amount is specifically to satisfy, in part, the retiree medical, disability and life insurance benefits of the pre-spin retirees, those who receive these benefits from Solutia but retired from Monsanto prior to the spin-off.
It does not address the benefits of the post-spin retirees which is still to be determined.
At the time of these releases, two members of the Retirees Bankruptcy Committee were preparing to go to New York at the request of Solutia's legal firm, Kirkland & Ellis, to meet on June 9 and receive information regarding the reorganization and any proposed modifications to retiree benefits that might result. Kirkland & Ellis cancelled the meeting following the issue of the press releases, claiming conflicts for their person or persons involved. At the time of this writing (June 8) the Retirees Bankruptcy Committee has no information other than the press releases regarding Solutia's reorganization. I expect the meeting with Kirkland & Ellis to be rescheduled and we will receive information related to retiree benefits at that time.
Keep in mind that an "agreement-in-principle" has been reached, not a definitive agreement or contract; the Bankruptcy Court first has to approve this agreement before any subsequent details can be worked out. Then, when a definitive agreement is agreed upon, it will also have to be approved by the court. There is still a lot to be determined.