A chemical company is attempting to block a Bermuda-based investment fund from selling its stake.

St. Louis-based Solutia Inc. is seeking to block one of its largest shareholders, Lime Fund LLC and its Bermuda-based affiliate, Lime Overseas Fund Ltd., from trading the 7,767,509 shares it currently holds.

Dow Jones Newswires said the New York special-situations investment fund on August 1 notified the US Bankruptcy Court in Manhattan that they intended to sell or transfer their entire stake in the company.

The court in February approved procedures for the transfer of Solutia stock in an effort to preserve the company?s net operating losses for federal income-tax purposes. The procedures enable the company to evaluate and, if necessary, act to block any equity transfer that would harm the net operating losses.

The Lime funds said they?re in the process of being wound up.