LyondellBasell to emerge stronger from bankruptcy

LyondellBasell Industries is set to emerge stronger, with a leaner bebt of around $7.2 billion against its pre-bankruptcy debt of $24 billion, after a US bankruptcy court on Friday approved the company's reorganisation plan.

The US bankruptcy court for the southern district of New York on Friday approved LyondellBasell's plan of reorganisation, which had support from almost all creditors entitled to vote on the plan, the company said in a release.

LyondellBasell affiliates, currently in voluntary reorganisation, are expected to emerge from Chapter 11 bankruptcy protection on 30 April 2010, the release said.

Under the reorganisation plan, LyondellBasell Industries NV, a new holding company incorporated in the Netherlands will replace LyondellBasell Industries AF SCA of Luxembourg as the new parent company.

LyondellBasell Industries AF SCA will no longer be a part of LyondellBasell and the new company's corporate seat will be Rotterdam, Netherlands, with administrative offices in Houston and Rotterdam.

"We are extremely proud to announce that in the short period of 15 months, LyondellBasell is poised to exit from Chapter 11," said Jim Gallogly, LyondellBasell's chief executive officer.