30 March 2009 20:39 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS news)--The Lyondell Chemical that emerges from US bankruptcy will be largely similar in core functions to the one that went into bankruptcy, but without a $25bn (€17bn) debt load, a top company executive said on Monday.
The plunge in demand in the fourth quarter of 2008 was the decisive factor in Lyondell Chemical’s bankruptcy filing, but the company had also been saddled with $25bn in debt, Deasy said on the sidelines of the 2009 International Petrochemical Conference (IPC), sponsored by the National Petrochemical & Refiners Association (NPRA).
The reduction of that debt through the bankruptcy process will result in a stronger company, Deasy said, adding he expects the new LyondellBasell will retain its present core functions.
Deasy said the company’s
The producer has received $3.25bn in debtor-in-possession (DIP) financing to provide it with new liquidity, and plans to produce a draft reorganisation plan by mid August, Deasy said.
Chapter 11 bankruptcy protection has given the producer some needed flexibility, he added.
“The capabilities that are allowed under Chapter 11 bankruptcy gave us increased flexibility to move forward with our Chocolate Bayou plant rationalisation that we normally wouldn’t have had,” Deasy said. “Accepting and rejecting [existing] contracts is one of the things that come with being under Chapter 11 protection.”
When asked whether in hindsight Lyondell could have avoided bankruptcy, Deasy said, “I don’t think we can fault what occurred with our management – that is not a cop-out.”
($1 = €0.75)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|