Reliance eyes bankrupt Dutch company LyondellBasel: report
19 September 2009
Reliance Industries is looking at acquiring the assets of bankrupt Dutch petrochemicals company LyondellBasell, either in part or whole, CNBC-TV18 network reported, citing sources.
CNBC-TV18 quoted sources as saying that Reliance could make a cash payment of $3.25 billion to Lyondell's vendors for the deal.
The company is in the process of putting together a rights offering to provide the company with additional liquidity after it emerges from Chapter 11 bankruptcy, Lyondell spokesman David Harpole told CNBC-TV 18. But he refused to speculate on it saying: "Whether that's what someone is speculating on or not, I don't know."
Lyondell, which filed for bankruptcy in January, filed its Chapter 11 reorganisation plans with bankruptcy court in New York on Friday.
The reorganisation plan aims at positioning the company and its 94 bankrupt affiliates to exit bankruptcy protection with significantly less debt.
Early this week, LyondellBasell announced that it would close the low-density polyethylene (LDPE) plant located at its Carrington, UK site by the end of this year.