Payout on LyondellBasell debt protection exceeds $700m

16 April 2009 19:46  [Source: ICIS news]

HOUSTON (ICIS news)--Sellers of debt protection on LyondellBasell's European bonds will pay out more than $700m (€532m), Reuters reported on Thursday.

The debt protection - known as credit default swaps - allows buyers to receive payments if a debtor defaults or misses an interest payment.

LyondellBasell triggered the payment when it said it would not make interest payments on its European bonds maturing in 2015, Reuters said.

LyondellBasell's US operations filed for bankruptcy protection earlier this year.

The missed bond payments were the result of legal and contractual restrictions, the company said.

($1 = €0.76)

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By: Al Greenwood
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