Chemical maker Solutia is suing Goldman Sachs, Citigroup and Deutsche Bank for allegedly reneging on its deal to provide $2 billion in financing. The funds would have allowed Solutia to emerge from Chapter 11. Obviously, all financing is on hold. And it stands to reason that companies in turnaround situations will be affected. My sense is that it may be better to wait it out if possible now. A successful offering now would come at unfavorable terms. Clearly, the credit crunch is making it hard for any company trying to emerge from bankruptcy. You can also add such companies to the list of potential litigants. We may see more of this.  

For more:
- here's the Financial Times article