LyondellBasell Industries, one of the world's largest polymers and petrochemical companies, announced its U.S. operations and one of its European holding companies, Basell Germany Holdings GmbH have voluntarily filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code in order to restructure its debts. The company statement said awaiting Court approval, it has made arrangements for up to US$8 bln in debtor-in-possession (DIP) financing to fund continuing operations. However, its non-U.S. operating entities will continue to function independent of the Chapter 11 process, the release said.
As per the company officials, continued 'softening in demand' and 'unprecedented volatility in raw materials cost' had led to the situation. Volker Trautz, Chief Executive Officer said, "Though we currently anticipate this situation to be short-term and expect customers to increase their purchasing in 2009, we made the decision to file Chapter 11 in order to provide the company with the time and resources necessary to facilitate an orderly restructuring and position the business for the long term."