RIL adopts wait-and-watch policy on LyondellBassel bid
15 Dec 2009
Reliance Industries (RIL) may decide today on submitting a bid for the bankrupt American arm of Luxembourg-based petrochemicals company LyondellBasell, after the outcome of a US court hearing on a revised rescue plan, according to media reports.
The company has filed an amended reorganisation plan with a US court proposing a $2.8 billion rights issue as well as simplifying its corporate structure to exit bankruptcy protection with significantly less debt.
The bankruptcy court in New York will hear the updated rescue plan of the management today and take the views of its creditors on the proposal. If the bankruptcy deal is approved, it may put the hit RIL's plans to acquire the company.
Commentators say LyondellBasell is expected to seek time till 6 September 2010 to finalise the reorganisation plan.
In November, Reliance made a cash offer for Lyondell, which said it would consider the offer as a "potential alternative" to maximise shareholder return.
Though RIL is yet to carry out due diligence, last week its executives had a few meetings with the LyondellBasell management in a hotel in Houston.