Houston, Texas -- LyondellBasell said 12 March that it had made three significant moves toward emergence from bankruptcy protection.
Specifically, LyondellBasell has:
• obtained bankruptcy court approval of its third amended disclosure statement, allowing it to begin soliciting votes on its third reorganisation plan;
• obtained bankruptcy court authorisation for a settlement resolving various claims against lenders; and
• obtained court approval of an equity commitment agreement of 11 Dec 2009 on a $2800 million rights offering.
Holders of most the company's debt have agreed to support the plan, LyondellBasell said.
• Separately, LyondellBasell announced that its wholly owned subsidiary Lyondell Chemical Co. is to pursue $3250 million of first priority debt financing.
The net proceeds from this sale, together with borrowings under the Term Loan and a new European securitisation facility and proceeds from a $2800 million rights offering, would be used upon emergence from bankruptcy to repay and replace certain existing debt, including debtor-in-possession credit facilities and an existing European securitization facility and to make certain related payments, the company explained.