Lyondell seeks a 6 week extension of its bankruptcy loan

05-Aug-09

As Lyondell Chemical Co contends with a lawsuit brought by a creditors committee, it has sought a six-week extension of its bankruptcy loan until Jan 31. The lawsuit seeks to recover as much as US$22 bln from the banks, advisers and executives who arranged the 2007 leveraged buyout of the company by Basell. Lyondell had received approval in February for a US$8 bln debtor-in-possession financing to help fund operations while it reorganizes in bankruptcy court. Under the terms of the original agreement, the loan matures Dec. 15, 2009.