Rotterdam, Netherlands - LyondellBasell has received approval from the US Bankruptcy Court for the Southern District of New York for Lyondell Chemical Company's debtor-in-possession (DIP) financing package, the company said 27 Feb.
LyondellBasell said this action will allow the company access to an additional $1083 million of the DIP financing and will make an additional Euro 260 million available to "LyondellBasell entities that are organised outside of the US," the company added.
The DIP financing includes two credit agreements: a $6500 million term loan (comprising $3250 million in new loans and a $3250 million roll-up of existing loans) and a $1540 million asset-backed lending facility. On 8 Jan, the company received interim authorisation to use up to $3682 million of its DIP funding, including Euro 440 million for LyondellBasell's non-US entities. The DIP lenders include a combination of banks and investment firms, such as hedge funds and private equity firms.
"These funds will support the uninterrupted operation of our businesses worldwide, giving confidence to our many suppliers and allowing us to continue serving the needs of our global customers," said Volker Trautz, chief executive officer of LyondellBasell Industries. "This final approval of our DIP credit agreements means that we can turn our full attention to the task of emerging from Chapter 11 protection with a new capital structure and a strengthened business platform." (RD)