Bankruptcy court approves Lyondell's plan

By OGJ editors
HOUSTON, Mar. 12
-- The US Bankruptcy Court, Southern District of New York, has approved disclosure statements and various settlement agreements in a move likely to pave the way for Lyondell Chemical Co. to emerge from Chapter 11 bankruptcy protection this year.

An Apr. 23 confirmation hearing is scheduled for Lyondell’s reorganization plan (OGJ Online, Jan. 26, 2009).

On Mar. 12, US Bankruptcy Judge Robert Gerber of New York approved a settlement among unsecured creditors and senior leaders. After a hearing, Gerber rejected objections from a group of lenders, including New York hedge funds.

In a Mar. 12 news release, Lyondell also said it plans to borrow $3.25 billion to repay existing deb t once the bankruptcy case is concluded. Lyondell produces polymers, petrochemicals, and fuel.

Lyondell’s Houston operations are owned by LyondellBasell Industries of The Netherlands. LyondellBasell is privately owned by ProChemie GMBH, a joint venture of Access Industries and ProChemie Holding Ltd. Access Industries was founded in 1986 by US industrialist Leonard Blavatnik.

Basell International Holdings paid $12.7 billion for Lyondell Chemical.

To access this Article, go to: