LyondellBasell prefers restructuring to Reliance offer
08 Mar 2010
Dutch petrochemical major LyondellBasell, which rejected a takeover bid by Indian energy major Reliance Industries, today said the Reliance offer only undermined its reorganisation plan.
Reliance had offered $14.5 billion for a controlling stake in the Luxembourg-based bankrupt petrochemicals firm after LyondellBasell and its creditors settled a dispute that came in the way of a court-mandated restructuring plan for the company.
In documents filed with the bankruptcy court, LyondellBasell pointed out that a restructuring plan was a better option for the company than the $14.5-billion bid from Reliance Industries.
If the court approves LyondellBasell's disclosure statement, the plan should get approval from the company's creditors as well.
Under the restructuring plan, Lyondell would sell 263.9 million Class B shares, mainly in the form of a rights offering, to creditors like Apollo Management, Ares Management and Access.
The rights offer would give Apollo an additional stake of up to $1.52 billion in LyondellBasell, while Ares will get stake worth up to $475.7 million and Access up to $805.9 million, according to the court filing.