Solutia's acquisition of Flexsys is permitted by court

Brussels - A US bankruptcy court has permitted the $212.5 million acquisition of Flexsys by Solutia Inc. Solutia put in a bid to buy out its 50-50 partner in the Flexsys business, Akzo Nobel NV last December, but the deal was put into question due to Solutia's reorganisation under its Chapter 11 bankruptcy plan, filed in February 2006.

A US Bankruptcy court has now given permission for the acquisition, and Solutia has also received permission to buy Akzo out of their Crystex joint venture in Japan and had the go-ahead for the sale of its Dequest water treatment business to Thermphos Trading GmbH for $67 million in cash.

Flexsys reported 2005 sales of about $600 million and employs more than 1,000 people worldwide, according to Solutia.

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Opinions by US Judge Prudence C. Beatty US Bankruptcy Court

Court approves Solutia's buyout of Flexsys, sale plan for Dequest MSN Money (US - Missouri)

Akzo Nobel sale of Flexsys stake to Solutia for 212.5 mln usd approved by court AFX via ABC Money (US - Missouri)