LyondellBasell refinancing talks make progress - company source

06 January 2009 17:04  [Source: ICIS news]

LONDON (ICIS news)--Negotiations between highly-leveraged petrochemical giant LyondellBasell and its creditors continued on Tuesday, according to a source at the company, with progress reportedly being made.

“While Chapter 11 is an option that has been discussed, but it is only one option, and I think it is an option which a lot of companies have at least discussed recently,” said the source.

In Europe, LyondellBasell has stressed it had no intention of defaulting on any contracts, whether buying or selling, and that nothing had necessarily changed in the way in which business was conducted.

In the US the company was continuing refinancing discussions with a syndicate of banks over the payment of $281m (€208m), which was due on Sunday. The company’s debt is estimated at around $26bn.

LyondellBasell was formed in 2007 via a merger between the Dutch-based Basell, a unit of Russian-born billionaire Len Blavatnik's Access Industries, and Houston-based Lyondell in a $12.7bn deal.

($1 = €0.74)

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By: Rachel Howat
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