LyondellBasell's holding company incorporated in Luxembourg -- LyondellBasell Industries AF S.C.A. -- has been voluntarily added to its US affiliate Lyondell Chemical Company's Chapter 11 filing under U.S. Bankruptcy Code to protect against claims by certain financial and U.S. trade creditors. The company's U.S. operations and a holding company in Germany voluntarily filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code on Jan. 6 in order to facilitate a restructuring of the company's debts. LyondellBasell has obtained approximately US$8 bln in debtor-in-possession (DIP) financing to fund continuing operations.
LyondellBasell is exercising an option available under U.S. law to prevent creditors from enforcing guarantees by LyondellBasell AF S.C.A. for pre-petition obligations of LyondellBasell's U.S. businesses. According to a company statement, extending Chapter 11 protection to the European holding company is not an insolvency proceeding under any European law. No LyondellBasell manufacturing operation located outside of the United States has applied for or become involved in insolvency or bankruptcy proceedings in its respective home country.