NEW YORK - Citigroup, Goldman Sachs and Deutsche Bank have been handed a lawsuit for $2.25 billion from the US Bankruptcy Court after Solutia - a nylon and plastics producer - filed a suit accusing them of failing to provide an agreed loan to protect it from bankruptcy. The banks explained their withdrawal of support as a reaction to credit market turbulence.

Solutia claims market conditions were already volatile before the banks signed their commitment and alleges to have been misled, saying they agreed to finance the loan themselves if they failed to syndicate it. Solutia said if the banks will not finance the loan they should be held accountable for "fraudulently inducing" Solutia to agree to it. Goldman and Deutsche issued no comment, while Citigroup says the lawsuit is without merit and maintains it has complied with contractual obligations.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here