Saturday, January 7, 2012

Solutia completes sale of nylon business - Sacramento Business Journal:

ethelbertdiya3334.blogspot.com
The sale includes the unit’s management and as well as all five of its manufacturingy plantsin Alvin, Texas; Ala.; Greenwood, S.C.; Pensacola, Fla.; and Foley, Ala. The nylob business includes 2,000 of Solutia'z 5,100 employees. All 2,000, including 29 in St. Louis, became employeesd of the SK Capital affiliate. SK Capitapl paid Solutia $50 million in cash for the nylon Solutia also received a 2 percenyt equity stake in the new company forme d to hold the assets of thenylon business. In addition, Soluti a will receive $4 million in deferred cash paymentw to be paid inannual $1 million installmentx beginning in 2011.
SK Capital has secured replacementof $25 million of letters of credit associated with the nylon which has resulted in increasedr availability for Solutia under its credit agreements. The affiliatee of SK Capital will assume substantially all of the liabilitie s of thenylon business, including employee and pension liabilitiexs relating to the active employeews of the business and environmental liabilities, said Solutia, whichn plans to use the proceeds of the sale to pay down debt undedr its asset-based revolving credit facility. St. Louis-basee Solutia Inc. (NYSE: SOA), led by Chairman, President and CEO Jeffryh Quinn, develops specialty fibers, fluids and otherr performance products.

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