-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SOKNj96UOtFpgHR9JRoqk8Vn1orAq1FfGwkFObOTXSCQWcMvTt+NNzSbrKvTgn7Q k9gTqdY7Lu1FZlyj+zu3yw== 0001068800-05-000346.txt : 20050518 0001068800-05-000346.hdr.sgml : 20050518 20050518155113 ACCESSION NUMBER: 0001068800-05-000346 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050518 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050518 DATE AS OF CHANGE: 20050518 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOLUTIA INC CENTRAL INDEX KEY: 0001043382 STANDARD INDUSTRIAL CLASSIFICATION: CHEMICALS & ALLIED PRODUCTS [2800] IRS NUMBER: 431781797 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13255 FILM NUMBER: 05841754 BUSINESS ADDRESS: STREET 1: 575 MARYVILLE CENTRE DRIVE STREET 2: P O BOX 66760 CITY: ST. LOUIS STATE: MO ZIP: 63166-6760 BUSINESS PHONE: 3146741000 MAIL ADDRESS: STREET 1: P O BOX 66760 CITY: ST. LOUIS STATE: MO ZIP: 63166-6760 FORMER COMPANY: FORMER CONFORMED NAME: QUEENY CHEMICAL CO DATE OF NAME CHANGE: 19970804 8-K 1 form8k.txt SOLUTIA INC. FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): MAY 18, 2005 SOLUTIA INC. ------------ (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE -------- (STATE OF INCORPORATION) 001-13255 43-1781797 --------- ---------- (COMMISSION (IRS EMPLOYER FILE NUMBER) IDENTIFICATION NO.) 575 MARYVILLE CENTRE DRIVE, P.O. BOX 66760, ST. LOUIS, MISSOURI 63166-6760 - --------------------------------------------------------------- ---------- (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) (314) 674-1000 -------------- REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 7.01. REGULATION FD DISCLOSURE As previously reported, on December 17, 2003 Solutia Inc. ("Solutia") and its 14 U.S. subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code (the "Bankruptcy Code") in the U.S. Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court"). The cases were consolidated for the purpose of joint administration and were assigned case number 03-17949 (PCB). Solutia's subsidiaries outside the United States were not included in the Chapter 11 filing. On May 18, 2005 Solutia filed with the Bankruptcy Court as required by the Bankruptcy Code its monthly operating report for the period April 1, 2005 through April 30, 2005. The required Monthly Operating Report is furnished hereunder as Exhibit 99. Cautionary Statements Regarding Financial and Operating Data Solutia cautions investors and potential investors not to place undue reliance upon the information contained in the Monthly Operating Reports, as they were not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of any of Solutia or its subsidiaries, or any other affiliate of Solutia. The Monthly Operating Reports were not audited or reviewed by independent accountants, are as prescribed by applicable bankruptcy laws, and are subject to future adjustment and reconciliation. There can be no assurance that, from the perspective of an investor or potential investor in Solutia's securities, the Monthly Operating Reports are complete. The Monthly Operating Reports also contain information for periods which are shorter or otherwise different from those required in Solutia's reports pursuant to the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and such information might not be indicative of Solutia's financial condition or operating results for the period that would be reflected in Solutia's financial statements or in its reports pursuant to the Exchange Act. Results set forth in the Monthly Operating Reports should not be viewed as indicative of future results. Limitation on Incorporation by Reference In accordance with General Instruction B.2 of Form 8-K, the information in this Form 8-K furnished pursuant to Item 7.01 shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Exchange Act or Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits: Exhibit Number Description - -------------- ----------- 99 Monthly Operating Statement for the Month of April 2005 SIGNATURES PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY AUTHORIZED. SOLUTIA INC. ---------------------------- (Registrant) /s/ Rosemary L. Klein --------------------------- Senior Vice President, General Counsel and Secretary DATE: May 18, 2005 EX-99 2 ex99.txt MONTHLY OPERATING STATEMENT Exhibit 99 KIRKLAND & ELLIS LLP Citigroup Center 153 East 53rd Street New York, New York 10022-4675 Telephone: (212) 446-4800 Facsimile: (212) 446-4900 Richard M. Cieri (RC-6062) Jonathan S. Henes (JH-1979) Attorneys for the Debtors and Debtors in Possession UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK - ------------------------------------------------x : In re : Chapter 11 : SOLUTIA INC., ET AL., : Case No. 03-17949 (PCB) : Debtors. : (Jointly Administered) : - ------------------------------------------------x THIS MONTHLY OPERATING STATEMENT APPLIES TO: X All Debtors Axio Research Corporation - --- --- Solutia Inc. Solutia Investments, LLC - --- --- Solutia Business Enterprises Inc. Beamer Road Management Company - --- --- Solutia Systems, Inc. Monchem, Inc. - --- --- Solutia Overseas, Inc. Solutia Inter-America, Inc. - --- --- CPFilms Inc. Solutia International Holding, LLC - --- --- Solutia Management Company, Inc. Solutia Taiwan, Inc. - --- --- Monchem International, Inc. Solutia Greater China, Inc. - --- --- MONTHLY OPERATING STATEMENT FOR THE MONTH OF APRIL 2005(1) ---------------------- (1) The information contained in the Debtors' monthly operating report (the "MOR") is unaudited and is limited to the time period indicated and is presented in a format prescribed by the bankruptcy court. The MOR does not purport to represent financial statements prepared in accordance with GAAP nor is it intended to fully reconcile to the financial statements filed by Solutia Inc. with the Securities and Exchange Commission. Additionally, while every effort has been made to assure its accuracy and completeness, errors or omissions may have inadvertently occurred and the Debtors reserve the right to amend their MOR as necessary. 1 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK - ------------------------------------------------x : In re : Chapter 11 : SOLUTIA INC., ET AL., : Case No. 03-17949 (PCB) : Debtors. : (Jointly Administered) : - ------------------------------------------------x MONTHLY OPERATING STATEMENT FOR THE MONTH OF APRIL 2005 ------------------- DEBTORS' ADDRESS: 575 Maryville Centre Dr. St. Louis, MO 63141 DEBTORS' ATTORNEY: KIRKLAND & ELLIS LLP Richard M. Cieri (RC-6062) Jonathan S. Henes (JH-1979) Citigroup Center 153 East 53rd Street New York, New York 10022-4675 CURRENT MONTH NET INCOME ($M): $4 REPORT PREPARER: Timothy J. Spihlman THIS OPERATING STATEMENT MUST BE SIGNED BY A REPRESENTATIVE OF THE DEBTORS The undersigned, having reviewed the attached report and being familiar with the Debtors' financial affairs, verifies under penalty of perjury, that the information contained herein is complete, accurate and truthful to the best of my knowledge. DATE: May 18, 2005 /s/ Timothy J. Spihlman ------------------------- Timothy J. Spihlman Vice President and Controller Indicate if this is an amended statement by checking here: --- 2 SOLUTIA INC., ET. AL., Case Nos. 03-17948 (PCB) through 03-17962 (PCB) (Debtors in Possession) MONTHLY DISBURSEMENTS BY DEBTOR For the Month of April 2005 - ---------------------------------------------------------------------------- Solutia Inc. $ 212,113,086.83 - ---------------------------------------------------------------------------- Solutia Business Enterprises Inc.* $ -- - ---------------------------------------------------------------------------- Solutia Systems, Inc. $ 13,000.00 - ---------------------------------------------------------------------------- Solutia Overseas, Inc.* $ -- - ---------------------------------------------------------------------------- CPFilms Inc. $ 8,586,436.86 - ---------------------------------------------------------------------------- Solutia Management Company, Inc.* $ -- - ---------------------------------------------------------------------------- Monchem International, Inc.* $ -- - ---------------------------------------------------------------------------- Axio Research Corporation $ 27.01 - ---------------------------------------------------------------------------- Solutia Investments, LLC* $ -- - ---------------------------------------------------------------------------- Beamer Road Management Company* $ -- - ---------------------------------------------------------------------------- Monchem, Inc.* $ -- - ---------------------------------------------------------------------------- Solutia Inter-America, Inc. $ 131,988.80 - ---------------------------------------------------------------------------- Solutia International Holding, LLC* $ -- - ---------------------------------------------------------------------------- Solutia Taiwan, Inc. $ 14,631.91 - ---------------------------------------------------------------------------- Solutia Greater China, Inc.* $ -- - ---------------------------------------------------------------------------- *These non-operating debtors had no constructive disbursements made on their behalf. 3 SOLUTIA INC., ET. AL., Case Nos. 03-17948 (PCB) through 03-17962 (PCB) (Debtors in Possession) STATEMENT ON INSURANCE For the Month of April 2005 All insurance policy premiums due, including those for workers compensation and disability insurance, have been paid and all the policies remain in effect. 4 SOLUTIA INC., ET. AL., Case Nos. 03-17948 (PCB) through 03-17962 (PCB) (Debtors in Possession) SOLUTIA GROUP* STATEMENT OF CONSOLIDATED OPERATIONS (UNAUDITED) (DOLLARS IN MILLIONS) MONTH ENDED APRIL 30, 2005 -------------- TOTAL NET SALES $255 TOTAL COST OF GOODS SOLD 223 ---- GROSS PROFIT 32 TOTAL MAT EXPENSE 23 ---- OPERATING INCOME 9 EQUITY EARNINGS FROM AFFILIATES 10 INTEREST EXPENSE (7) OTHER INCOME, NET 1 REORGANIZATION ITEMS: Professional fees (6) ---- INCOME BEFORE TAXES 7 Income tax expense 1 ---- NET INCOME $ 6 ==== See Accompanying Notes to Consolidated Financial Statements *Includes non-U.S. subsidiaries of the Solutia Inc. corporate organization that did not commence Chapter 11 cases. 5 SOLUTIA INC., ET. AL., Case Nos. 03-17948 (PCB) through 03-17962 (PCB) (Debtors in Possession) SOLUTIA GROUP* STATEMENT OF CONSOLIDATED FINANCIAL POSITION (UNAUDITED) AS OF APRIL 30, 2005 (Dollars in ASSETS millions) ------ ----------- Cash $ 67 Trade Receivables, net 311 Inventories 255 Other Current Assets 93 ------- TOTAL CURRENT ASSETS 726 Property, Plant and Equipment, net 817 Investments in Affiliates 189 Intangible Assets, net 113 Other Assets 139 ------- TOTAL ASSETS $ 1,984 ======= LIABILITIES AND SHAREHOLDERS' DEFICIT ------------------------------------- Accounts Payable $ 194 Short Term Debt 300 Other Current Liabilities 212 ------- TOTAL CURRENT LIABILITIES 706 Long-Term Debt 270 Other Long-Term Liabilities 261 ------- TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 1,237 LIABILITIES SUBJECT TO COMPROMISE 2,170 SHAREHOLDERS' DEFICIT (1,423) ------- TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $ 1,984 ======= See Accompanying Notes to Consolidated Financial Statements *Includes non-U.S. subsidiaries of the Solutia Inc. corporate organization that did not commence Chapter 11 cases. 6 SOLUTIA INC., ET. AL., Case Nos. 03-17948 (PCB) through 03-17962 (PCB) (Debtors in Possession) SOLUTIA GROUP* STATEMENT OF CONSOLIDATED CASH FLOWS (UNAUDITED) (DOLLARS IN MILLIONS) MONTH ENDED APRIL 30, 2005 -------------- NET CASH PROVIDED BY OPERATING ACTIVITIES: Net income $ 6 Depreciation and amortization 10 Restructuring expenses and other unusual items (6) Changes in assets and liabilities: Trade receivables (14) Inventories 8 Accounts payable 1 Other assets and liabilities 25 ---- NET CASH PROVIDED BEFORE REORGANIZATION ITEMS 30 OPERATING CASH FLOWS - REORGANIZATION ITEMS: Professional services fees (4) Employee severance and retention payments (3) ---- NET CASH USED IN REORGANIZATION ITEMS (7) ---- NET CASH PROVIDED BY OPERATING ACTIVITIES 23 ==== NET CASH USED IN INVESTING ACTIVITIES: Property, plant and equipment purchases (4) ---- NET CASH USED IN INVESTING ACTIVITIES (4) ==== NET CASH USED IN FINANCING ACTIVITIES: Net change in short-term debt obligations (20) Net change in cash collateralized letters of credit 2 ---- NET CASH USED IN FINANCING ACTIVITIES (18) ==== NET INCREASE IN CASH AND CASH EQUIVALENTS 1 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 66 ---- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 67 ==== See Accompanying Notes to Consolidated Financial Statements *Includes non-U.S. subsidiaries of the Solutia Inc. corporate organization that did not commence Chapter 11 cases. 7 SOLUTIA INC., ET. AL., Case Nos. 03-17948 (PCB) through 03-17962 (PCB) (Debtors in Possession) SOLUTIA CHAPTER 11 DEBTORS STATEMENT OF CONSOLIDATED OPERATIONS (UNAUDITED) (DOLLARS IN MILLIONS) MONTH ENDED APRIL 30, 2005 -------------- TOTAL NET SALES $204 TOTAL COST OF GOODS SOLD 187 ---- GROSS PROFIT 17 TOTAL MAT EXPENSE 18 ---- OPERATING LOSS (1) EQUITY EARNINGS FROM AFFILIATES 11 INTEREST EXPENSE, NET (5) OTHER INCOME, NET 3 REORGANIZATION ITEMS: Professional fees (4) ---- INCOME BEFORE TAXES 4 Income Taxes - ---- NET INCOME $ 4 ==== See Accompanying Notes to Consolidated Financial Statements. 8 SOLUTIA INC., ET. AL., Case Nos. 03-17948 (PCB) through 03-17962 (PCB) (Debtors in Possession) SOLUTIA CHAPTER 11 DEBTORS STATEMENT OF CONSOLIDATED FINANCIAL POSITION (UNAUDITED) AS OF APRIL 30, 2005 (Dollars in ASSETS millions) ------ ----------- Cash $ 9 Trade Receivables, net 173 Account Receivables-Unconsolidated Subsidiaries 50 Inventories 157 Other Current Assets 56 ------- TOTAL CURRENT ASSETS 445 Property, Plant and Equipment, net 685 Investments in Subsidiaries and Affiliates 515 Intangible Assets, net 101 Other Assets 88 ------- TOTAL ASSETS $ 1,834 ======= LIABILITIES AND SHAREHOLDERS' DEFICIT ------------------------------------- Accounts Payable $ 152 Short Term Debt 300 Other Current Liabilities 152 ------- TOTAL CURRENT LIABILITIES 604 Other Long-Term Liabilities 208 ------- TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 812 LIABILITIES SUBJECT TO COMPROMISE 2,282 SHAREHOLDERS' DEFICIT (1,260) ------- TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $ 1,834 ======= See Accompanying Notes to Consolidated Financial Statements 9 SOLUTIA INC., ET. AL., Case Nos. 03-17948 (PCB) through 03-17962 (PCB) (Debtors in Possession) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. NATURE OF OPERATIONS AND BANKRUPTCY PROCEEDINGS Nature of Operations Solutia Inc., together with its subsidiaries (referred to herein as "Solutia", the "Solutia Group" or the "Company"), is a global manufacturer and marketer of a variety of high-performance chemical-based materials. Solutia is a world leader in performance films for laminated safety glass and after-market applications; specialty products such as water treatment chemicals, heat transfer fluids and aviation hydraulic fluids; and an integrated family of nylon products including high-performance polymers and fibers. Prior to September 1, 1997, Solutia was a wholly-owned subsidiary of the former Monsanto Company (now known as Pharmacia Corporation, a wholly-owned subsidiary of Pfizer, Inc.). On September 1, 1997, Pharmacia distributed all of the outstanding shares of common stock of Solutia as a dividend to Pharmacia stockholders (the "spinoff"). As a result of the spinoff, on September 1, 1997 Solutia became an independent publicly held company and its operations ceased to be owned by Pharmacia. A net deficiency of assets of $113 million resulted from the spinoff. Proceedings Under Chapter 11 of the Bankruptcy Code On December 17, 2003 Solutia Inc. and its 14 U.S. subsidiaries (collectively, "Debtors") 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 cases were consolidated for the purpose of joint administration and were assigned case number 03-17949 (PCB). Solutia's subsidiaries outside the United States were not included in the Chapter 11 filing. The filing was made to restructure Solutia's balance sheet by reducing indebtedness to appropriate levels, to streamline operations and reduce costs, in order to allow Solutia to emerge from Chapter 11 as a viable going concern, and to obtain relief from the negative financial impact of liabilities for litigation, environmental remediation and certain postretirement benefits and liabilities under operating contracts, all of which were assumed at the time of the spinoff of Solutia from Pharmacia (collectively, "legacy liabilities"). These factors, combined with the weakened state of the chemical manufacturing sector, general economic conditions and continuing high, volatile energy and crude oil costs have been an obstacle to Solutia's financial stability and success. While Solutia believes it will be able to significantly reduce the legacy liabilities through the bankruptcy process, there can be no certainty that it will be successful in doing so. Under Chapter 11, Solutia is operating its businesses as a debtor-in-possession ("DIP") under court protection from creditors and claimants. Since the Chapter 11 filing, all orders sufficient to enable Solutia to conduct normal business activities, including the approval of Solutia's DIP financing, have been entered by the bankruptcy court. While Solutia is subject to Chapter 11, all transactions not in the ordinary course of business require the prior approval of the bankruptcy court. 10 As a consequence of the Chapter 11 filing, pending litigation against Solutia is generally stayed, and no party may take any action to collect its pre-petition claims except pursuant to order of the bankruptcy court. November 30, 2004 was the last date by which holders of pre-filing date claims against the Debtors could file such claims. Any holder of a claim that was required to file such claim by November 30, 2004, and did not do so, may be barred from asserting such claim against the Debtors and, accordingly, may not be able to participate in any distribution with respect to such claim. Differences between claim amounts identified by the Debtors and claims filed by claimants will be investigated and resolved in connection with the Debtors' claims resolution process, and only holders of claims that are ultimately allowed for purposes of the Chapter 11 case will be entitled to distributions. Solutia has not yet completed its analysis of all the proofs of claim. Because the settlement terms of allowed claims are subject to a confirmed plan of reorganization, the ultimate distribution with respect to allowed claims is not presently ascertainable. In order to exit Chapter 11 successfully, Solutia must propose and obtain confirmation by the bankruptcy court of a plan of reorganization that satisfies the requirements of the U.S. Bankruptcy Code. As provided by the U.S. Bankruptcy Code, Solutia had the exclusive right to propose a plan of reorganization for 120 days following the Chapter 11 filing date. The bankruptcy court has subsequently approved several extensions of the exclusivity period, the most recent of which is set to expire on July 11, 2005. No assurance can be given that any future extension requests will be granted by the bankruptcy court. Moreover, although Solutia expects to file a plan of reorganization that provides for Solutia's emergence from bankruptcy as a going concern, there can be no assurance that a plan of reorganization will be confirmed by the bankruptcy court or that any such plan will be implemented successfully. Solutia believes that its plan of reorganization will result in cancellation of its existing shares of common stock, as well as options and warrants to purchase its common stock, and that it is unlikely that holders of Solutia's common stock, including options and warrants to purchase Solutia's common stock, will receive any consideration for that stock or those options and warrants in such a plan of reorganization. Solutia is unable to estimate what recovery such a plan of reorganization will provide to holders of Solutia's outstanding debt securities. While Solutia filed for Chapter 11 in part to gain relief from the legacy liabilities it was required to assume when it was spun off from Pharmacia, the extent to which such relief will be achieved is uncertain at this time. It is also possible that Solutia will agree to retain a portion of the legacy liabilities as part of its plan of reorganization. Basis of Consolidation The consolidated financial statements of the Solutia Group include the accounts of Solutia Inc. and its majority-owned U.S. and non-U.S. subsidiaries. The non-U.S. subsidiaries did not commence Chapter 11 cases. The consolidated financial statements of the Solutia Chapter 11 Debtors include the accounts of Solutia Inc. and its majority-owned U.S. subsidiaries, with investments in non-U.S. subsidiaries accounted for on the cost basis. In each case, all significant intercompany transactions and balances have been eliminated in consolidation. Companies in which Solutia has a significant interest but not a controlling interest are accounted for under the equity method of accounting and included in investments in subsidiaries and affiliates in the statement of consolidated financial position. Solutia's proportionate share of these companies' net earnings or losses is reflected in equity earnings (loss) from affiliates in the consolidated statement of operations. In accordance with Financial Accounting Standards Board Interpretation No. 46, Consolidation of Variable Interest Entities, variable interest entities in which Solutia is the primary beneficiary are consolidated within the consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been 11 condensed or omitted for purposes of this Operating Report. The consolidated statement of operations for any interim period is not necessarily indicative of the results that may be expected for a quarter, full year, or any future interim period. Liquidity At April 30, 2005, total liquidity for the Solutia Group was approximately $200 million, consisting of $67 million of cash and DIP facility availability of $133 million. At April 30, 2005, total liquidity for the Solutia Chapter 11 Debtors was approximately $142 million, consisting of $9 million of cash and DIP facility availability of $133 million. 2. SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies are consistent with those listed in the Company's 2004 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 10, 2005. 3. SUPPLEMENTAL INFORMATION - STATEMENT OF CONSOLIDATED CASH FLOWS Restructuring Expenses and Other Unusual Items Restructuring expenses and other unusual items included in the consolidated statement of operations and the statement of consolidated cash flows consisted of a one-time, non-operational gain of $6 million incurred by one of Solutia's equity affiliates. 12 SOLUTIA INC., ET. AL., Case Nos. 03-17948 (PCB) through 03-17962 (PCB) (Debtors in Possession) SOLUTIA CHAPTER 11 DEBTORS SCHEDULE OF FEDERAL, STATE AND LOCAL TAXES COLLECTED, WITHHELD OR PAID MONTH ENDED APRIL 30, 2005
PRE-PETITION POST-PETITION TOTAL AMOUNT AMOUNT AMOUNT ------------ ------------- ------ 1. GROSS SALARIES AND WAGES - 22,865,813.19 22,865,813.19 2. PAYROLL TAXES WITHHELD - 6,029,165.64 6,029,165.64 3. EMPLOYER PAYROLL TAX CONTRIBUTED - 1,744,794.96 1,744,794.96 4. GROSS TAXABLE SALES - 1,025,549.53 1,025,549.53 5. SALES TAXES COLLECTED - 359,254.13 359,254.13 6. PROPERTY TAXES PAID - 240,936.48 240,936.48 7. OTHER TAXES PAID - 37,585.00 37,585.00
13 SOLUTIA INC., ET. AL., Case Nos. 03-17948 (PCB) through 03-17962 (PCB) (Debtors in Possession) SOLUTIA CHAPTER 11 DEBTORS SCHEDULE OF FEDERAL, STATE AND LOCAL TAXES COLLECTED, WITHHELD OR PAID MONTH ENDED APRIL 30, 2005
DATES AND AMOUNTS PAID TO TAXING AGENCIES (ITEMS 2, 3, 5, 6, 7) PRE-PETITION POST-PETITION TOTAL ITEM DEBTOR ENTITY DATE AMOUNT AMOUNT AMOUNT TYPE OF TAX NUMBER - ----------------------------------------------------------------------------------------------------------------- Solutia Inc. 04/01/05 - 277,738.49 277,738.49 Employee Payroll Taxes 2 Solutia Inc. 04/06/05 - 100,671.34 100,671.34 Employee Payroll Taxes 2 Solutia Inc. 04/07/05 - 73,998.39 73,998.39 Employee Payroll Taxes 2 Solutia Inc. 04/08/05 - 195,878.23 195,878.23 Employee Payroll Taxes 2 Solutia Inc. 04/11/05 - 14,885.18 14,885.18 Employee Payroll Taxes 2 Solutia Inc. 04/13/05 - 89,676.82 89,676.82 Employee Payroll Taxes 2 Solutia Inc. 04/14/05 - 190,000.59 190,000.59 Employee Payroll Taxes 2 Solutia Inc. 04/15/05 - 1,702,165.59 1,702,165.59 Employee Payroll Taxes 2 Solutia Inc. 04/20/05 - 92,738.32 92,738.32 Employee Payroll Taxes 2 Solutia Inc. 04/21/05 - 71,382.22 71,382.22 Employee Payroll Taxes 2 Solutia Inc. 04/22/05 - 288,046.85 288,046.85 Employee Payroll Taxes 2 Solutia Inc. 04/25/05 - 832.05 832.05 Employee Payroll Taxes 2 Solutia Inc. 04/27/05 - 98,925.95 98,925.95 Employee Payroll Taxes 2 Solutia Inc. 04/28/05 - 186,244.29 186,244.29 Employee Payroll Taxes 2 Solutia Inc. 04/29/05 - 2,634,631.72 2,634,631.72 Employee Payroll Taxes 2 Solutia Inc. 04/01/05 - 59,022.75 59,022.75 Employer Payroll Taxes 3 Solutia Inc. 04/06/05 - 28,764.27 28,764.27 Employer Payroll Taxes 3 Solutia Inc. 04/07/05 - 23,065.18 23,065.18 Employer Payroll Taxes 3 Solutia Inc. 04/08/05 - 46,046.03 46,046.03 Employer Payroll Taxes 3 Solutia Inc. 04/11/05 - 2,946.17 2,946.17 Employer Payroll Taxes 3 Solutia Inc. 04/13/05 - 26,180.45 26,180.45 Employer Payroll Taxes 3 Solutia Inc. 04/14/05 - 63,037.10 63,037.10 Employer Payroll Taxes 3 Solutia Inc. 04/15/05 - 568,820.69 568,820.69 Employer Payroll Taxes 3 Solutia Inc. 04/20/05 - 94,708.80 94,708.80 Employer Payroll Taxes 3 Solutia Inc. 04/21/05 - 21,981.38 21,981.38 Employer Payroll Taxes 3 Solutia Inc. 04/22/05 - 77,426.18 77,426.18 Employer Payroll Taxes 3 Solutia Inc. 04/25/05 - 343,065.65 343,065.65 Employer Payroll Taxes 3 Solutia Inc. 04/27/05 - 1,085,293.54 1,085,293.54 Employer Payroll Taxes 3 Solutia Inc. 04/28/05 - 62,177.70 62,177.70 Employer Payroll Taxes 3 Solutia Inc. 04/29/05 - 733,848.62 733,848.62 Employer Payroll Taxes 3 Solutia Inc. 04/15/05 - 4,977.11 4,977.11 Sale/Use 5 Solutia Inc. 04/19/05 - 294,941.09 294,941.09 Sale/Use 5 CP Films, Inc. 04/28/05 - 53,960.02 53,960.02 Sales 5 CP Films, Inc. 04/28/05 - 5,375.91 5,375.91 Use 5 Solutia Inc. 04/05/05 - 19.00 19.00 Property Tax 6 Solutia Inc. 04/28/05 - 240,917.48 240,917.48 Property Tax 6 Solutia Inc. 04/01/05 - 170.00 170.00 Annual Report 7 CP Films, Inc. 04/11/05 - 24,100.00 24,100.00 Other- Income 7 Solutia Systems, Inc. 04/11/05 - 13,000.00 13,000.00 Other- Income 7 Solutia Inc. 04/14/05 - 315.00 315.00 Annual Report 7
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