LyondellBasell emerges from bankruptcy protection

LyondellBasell on Friday announced that the company has emerged from Chapter 11 bankruptcy protection. The US bankruptcy court for the southern district of New York last week approved the company's plan of reorganisation with the support of an overwhelming majority of the voting creditor classes.

"This marks a new beginning for LyondellBasell.  We emerge from bankruptcy as a stronger, leaner, more competitive company, with an improved balance sheet and liquidity, intent on making LyondellBasell the industry leader," said Jim Gallogly, chief executive officer. 

"Our employees have worked diligently for more than one year to bring us to this point and I extend my appreciation to each of them for their perseverance. Likewise, I am grateful to our customers, suppliers and investors for their unwavering confidence in our company," he added.

He said the company will now devote its full attention to making LyondellBasell the best company in the industry, committed to operational excellence, further improving competitiveness, and most of all, serving customers. 

LyondellBasell has a significantly improved financial position at emergence, with approximately $5.2 billion of net consolidated debt and approximately $3 billion of opening liquidity.  As part of its exit financing, LyondellBasell raised $3.25 billion of first priority debt as well as $2.8 billion through a rights offering.

The proceeds from the sale of notes, borrowings under a term loan, an asset-based lending facility, a new European securitisation facility and the rights offering proceeds were used to pay and replace certain existing debt and other obligations, including debtor-in-possession credit facilities, an existing European securitisation facility, to make certain other payments, and to assure adequate liquidity for the company going forward.