LyondellBasell gets court OK for Chapter 11 moves

Specifically, LyondellBasell has:

*Obtained bankruptcy court approval of its third amended disclosure statement, allowing it to begin soliciting votes on its third reorganization plan;

*Obtained bankruptcy court authorization for a settlement resolving various claims against lenders; and

*Obtained court approval of an equity commitment agreement of 11 December 2009 on a $2.8bn rights offering.

Holders of most the company's debt have agreed to support the plan, LyondellBasell said.

Separately, LyondellBasell announced that its wholly owned subsidiary Lyondell Chemical will pursue $3.25bn of first priority debt financing.

The net proceeds from this sale, together with borrowings under the term loan and a new European securitisation facility and proceeds from a $2.8bn rights offering, would be used upon emergence from bankruptcy to repay and replace certain existing debt, including debtor-in-possession credit facilities and an existing European securitization facility and to make certain related payments, the company explained.

LyondellBasell is pursuing a reorganization plan in US Bankruptcy Court in New York. The company plans to exit bankruptcy 30 April.

[ Back ]