Lyondell misses European bond payment again

16 March 2009 21:34  [Source: ICIS news]

HOUSTON (ICIS news)--Bankrupt US producer Lyondell Chemical missed a $52m (€40m) interest payment on European bonds maturing in 2015, a company spokesman said on Monday.

The payment was initially due on 15 February; however it had a 30-day grace period, said company spokesman David Harpole. Lyondell missed both deadlines.

The company missed the payment as a result of legal and contractual restrictions connected to the bonds, Harpole said. The missed payment has nothing to do with the amount, since Lyondell has arranged bankruptcy financing.

Lyondell will determine how it will proceed with the bond payments after it resolves the restrictions connected to the bonds, he said.

Lyondell will have several days to ponder the bond payments, since they fall under a 60-day court order that protects Lyondell's solvent sister companies from creditors, Harpole said.

Lyondell is a subsidiary of LyondellBasell Industries. LyondellBasell's US operations filed for bankruptcy protection in January.

The filing did not cover most of LyondellBasell's European operations.

Lyondell did make a $12m payment on an unrelated group of bonds that mature in 2027, Harpole said. Those bonds did not have the restrictions connected to the 2015 notes.

($1 = €0.77)

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By: Al Greenwood
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