06 January 2009 18:03 [Source: ICIS news]
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HOUSTON (ICIS news)--LyondellBasell and its creditors are discussing the financing the company would need for a potential bankruptcy filing, the chemical major said on Tuesday.
Such debtor-in-possession (DIP) financing would fund the day-to-day operations of LyondellBasell if it files for bankruptcy protection under Chapter 11.
In addition, the two sides are discussing whether LyondellBasell could refrain from meeting some of its obligations, according to a filing with the US Securities and Exchange Commission (SEC).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.
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.
Additional reporting by Al Greenwood
($1 = €0.74)
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