LyondellBasell announces $18-billion creditor-supported reorganisation plan
24 Dec 2009
Gobal petrochemical giant LyondellBasell today said it has entered into an `equity commitment agreement' with its lenders under which approximately $18 billion of senior and bridge debt will be converted into common equity.
LyondellBasell voluntarily filed to reorganize its U.S. operations and one of its European holding companies under Chapter 11 of the U.S. Bankruptcy Code on 6 January 2009 in order to restructure the company's debts.
The company today filed a motion in the bankruptcy court to approve a settlement of various claims against its prepetition secured senior and bridge lenders entered into on 11 December, the company said in a release.
The second amended plan of reorganisation and the second amended disclosure statement also details the plan support agreement with holders of significant amounts of its prepetition secured debt, it added.
The settlement, which is subject to court approval, would resolve various claims against LyondellBasell's prepetition secured senior and bridge lenders, it said.
Approval of the settlement will help pave the way to LyondellBasell's emergence from Chapter 11, the company said.