06 January 2009 21:58 [Source: ICIS news]
(adds dropped words "US operations" in paragraphs 1 and 4)
By Al Greenwood
HOUSTON (ICIS news)--Chemical major LyondellBasell's US operations filed for bankruptcy protection on Tuesday, listing debts of $19bn (€14bn) and assets of $27bn, according to court documents.
Under bankruptcy protection, a company continues its day-to-day operations while it reorganises its finances. In the meantime, it is protected from creditor lawsuits. Altogether, the filing will cover 79 afiliates.
The largest creditors include the Bank of New York, which is the trustee for $615m in notes. The bank is the trustee for an additional $241.4m in notes for Millennium America, an affiliate of LyondellBasell.
The US operations of LyondellBasell filed for protection in the southern district of the bankruptcy court in New York. It listed 25,001-50,000 creditors.
The filing cames after the company missed a Sunday deadline to pay $281m in interest and fees.
LyondellBasell was formed in 2007 in a highly leveraged $12.7bn deal, in which Lyondell merged with Basell, a Dutch producer. Basell was a unit of Access Industries.
After the merger, credit markets tightened while demand for petrochemicals collapsed, constraining the liquidity of the company.
($1 = €0.74)
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