Solutia case: attorneys are only winners in bankruptcy

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Solutia case: attorneys are only winners in bankruptcy
2006-11-23
Someone should bring a birthday cake with three candles to the federal courthouse in Manhattan next month. The celebrants will be the battalion of bankruptcy lawyers who are profiting from Solutia's long-running Chapter 11 case. The chemical company has turned its business around dramatically in three years but hasn't been able to resolve some pesky legal issues. So the lawyers' meter continues to run, with Solutia's bankruptcy expenses running at more than $5 million a month. The company hasn't had much help from Judge Prudence Carter Beatty, who conducted a trial this summer in a dispute between Solutia and its bondholders but has yet to hand down a verdict. Last week brought a glimmer of hope that the legal logjam soon might be broken. In a court filing, Solutia Chief Executive Jeffry Quinn said the company was working on a new reorganization plan that would set up a reserve for the bondholders' disputed claim....
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