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Exhibit 10.1
[SOLUTIA logo]
News
SOLUTIA INC.
575 Maryville Centre Drive
St. Louis, Missouri 63141
P.O. Box 66760
St. Louis, Missouri 63166-6760
FOR IMMEDIATE RELEASE
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MEDIA: Dan Jenkins (314) 674-8552
INVESTORS: Tim Spihlman (314) 674-5206
SOLUTIA AGREES TO SALE OF ASTARIS JOINT VENTURE
TRANSACTION CONSISTENT WITH REORGANIZATION STRATEGY
ST. LOUIS - SEPTEMBER 1, 2005 - Solutia
Inc. (OTCBB: SOLUQ), today announced
it and FMC Corporation have reached a
definitive agreement to sell Astaris,
their 50/50 specialty phosphates joint
venture. Under the terms of the
agreement, Israel Chemicals Limited (ICL)
will purchase substantially all of
the assets of Astaris for $255 million.
This transaction is subject to
bankruptcy court approval, regulatory
clearance and various other conditions
and contingencies.
"The Astaris divestiture is the latest step forward in a key
component of our reorganization strategy:
building a portfolio of
high-potential businesses to form the core
of reorganized Solutia," said Jim
Sullivan, senior vice president and chief
financial officer, Solutia Inc.
"While Astaris has benefited greatly from
restructuring actions taken during
2004, it is a non-core asset to Solutia
that is a better strategic fit for a
company such as ICL."
Solutia will use the proceeds of the Astaris sale to partially
pay
down the term loan portion of its
debtor-in-possession (DIP) financ
