Bankruptcy judge gives Lyondell more time to exclusively file a plan of reorganization

20-Jan-10

A bankruptcy judge in USA has given the bankrupt chemicals company Lyondell Chemical Co. time until April 15 to exclusively file a plan of reorganization. Additionally he has denied a creditors' motion to expand a probe into some of the company's restructuring methods and also denied a motion to stop so-called adequate protection payments of about US$40 mln per month to first-lien lenders, since such an act would cause the company to default on its bankruptcy financing agreement. The company will have until April 15 to plan its reorganization without competing plans from other parties. The judge also denied motion by the official committee of unsecured creditors to expand the duties of a court-appointed examiner to ensure that the petrochemicals manufacturer is fairly evaluating proposals from potential suitors such as India's Reliance Industries Ltd.