LyondellBasell could exit Chapter 11 in May bankruptcy

22-Apr-10

LyondellBasell could exit Chapter 11 bankruptcy, as early as next month, and list on the New York Stock Exchange (NYSE) from the middle of the third quarter of this year, as reported by ICIS. The company plans to appeal to the New York bankruptcy court to approve and confirm its Plan of Re-organization, on April 23. Exit financing is in place and is well received in the market as it was oversubscribed. LB’s major creditors had agreed to convert debt into equity. Along with the debt restructuring, the company had implemented very severe cost cutting, taking out 20% of fixed costs in 2009, amounting to US$800 mln - US$1 bln. Cost-cutting measures involved 3,000 redundancies, reduction in contractors, closure of the Chocolate Bayou cracker and polymer plants in Europe.