Solutia Inc. v. Citigroup Global Markets, et al.
What happens when a Chapter 11 debtor faces the prospect of starting from scratch after its reorganization plan doesn't close? The debtor calls us, we litigate, and the Company successfully emerges from bankruptcy a month after we were hired. In the case of Solutia, a $3 billion chemicals company, the Company was scheduled to draw down on its $2 billion exit loan and emerge from bankruptcy at the end of January 2008. The lenders refused, citing adverse market conditions and their right to walk from the deal pursuant to a "market MAC" in the financing documents. Quinn Emanuel was hired on January 21, 2008. We filed a complaint on February 6, 2008 and tried the case on February 21, 22, and 23, after producing over a million pages of documents in six days, and taking and defending 30 depositions in as many days. At the close of the evidentiary record, just hours before closing arguments were to begin, the lenders agreed to fund. Solutia emerged from Chapter 11 on February 26, 2008.
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