LyondellBasell says agreement with creditors clears way for bankruptcy exit
16 February 2010
LyondellBasell Industries today said it has reached an agreement with its unsecured creditors over the settlement of claims against parties who financed the company's buy-out deal, paving the way for LyondellBasell's emergence from Chapter 11.
The settlement involves payment of an additional $150 million in the form of reorganised equity to the unsecured creditors of the company.
"The proposed agreement, which remains subject to court approval, final internal approval and final documentation, resolves objections by the Unsecured Creditor's Committee to the company's settlement of the estate's claims against the parties who financed the 2007 leveraged buyout of Lyondell by Basell," the company said in a release.
LyondellBasell announced the settlement in December 2009.
The new agreement increases the amount that will be distributed on the effective date of the plan to the holders of general unsecured claims, the Millennium Bonds and 2015 notes from $300 million to $450 million.
The additional $150 million is to be paid in the form of reorganised equity, which will be funded by reduction in distributions to the holders of senior secured facility and bridge loan claims under the plan, LyondellBasell said.