Financial Accounting Blog

Tuesday, November 04, 2003

Contingent Liabilities. August 21, 2003 | Merrill Upgrades Monsanto to 'Buy'

Here is an old, but good, article that describes how contingent liabilities can affect a companies ability to pay back maturing bonds and pension funds.

Carson thinks the settlement greatly improves the potential that chemicals-maker Solutia will be able to refinance its credit facility and address upcoming bond maturities and pension funding obligations. He thinks this settlement is favorable for Solutia as Monsanto's other contingent liabilities associated with Solutia should be covered by Solutia's cash flow from operations.