Rotterdam, The Netherlands -- Lyondell Chemical Co. has gained a preliminary injunction from a US Bankruptcy Court to stop certain creditors from proceeding against its parent company, LyondellBasell Industries AF SCA.
This means that LyondellBasell can continue to reorganise its worldwide businesses without the threat of having assets eroded by claims against entities not protected by the bankruptcy, the company said in a 27 Feb statement.
The injunction gives LyondellBasell 60 days to evaluate options for protecting its worldwide businesses.
According to the statement, the injunction prevents various creditors from enforcing pre-petition guarantees that were issued by LyondellBasell Industries AF S.C.A. for obligations of entities included in Chapter 11 protection.
The injunction also prevents holders of record and beneficial owners of the 8 3/8 percent Senior Notes due 2015 issued by LyondellBasell Industries AF S.C.A. from, among other things, taking any action to accelerate the maturity of these notes.
LyondellBasell Industries' US operations and one of its European holding companies filed to reorganise under Chapter 11 of the US Bankruptcy Code on 6 Jan 2009 in order to restructure its debts. Lyondell Chemical Co. is one of the 79 LyondellBasell entities included in this filing.