LyondellBasell has been granted court approval for the first US$2.167 bln out of a total US$8 bln proposed debtor-in-possession financing package. Debtor-in-possession (DIP) financing is used to fund continuing operations. Of the total US$8 bln, US$3.25 bln consists of new funding; US$3.25 bln represents a refinancing of certain obligations under LyondellBasell's existing senior secured credit facilities; and US$1.515 bln represents replacement of existing working capital facilities. LyondellBasell had also been given permission to borrow US$100 mln from Citibank while it sought approval for the debtor-in-possession financing.
Chapter 11 protects LyondellBasell and its 79 affiliated companies from its debts in the US. The company has also requested permission to pay foreign creditors US$350 mln to avert the risk of its suppliers cutting off access to raw materials or suing the company.