13 September 2009 22:28 [Source: ICIS news]
HOUSTON (ICIS news)--Lyondell Chemical would emerge from bankruptcy by forming a new holding company, according to to a US court plan filed on Friday.
“We remain on schedule to emerge from Chapter 11 as a stronger company and a more viable business partner with a solid capital structure," said LyondellBasell chief executive Jim Gallogly in a prepared statement. "We expect to be ready to emerge near year end."
The new company would be formed in the Netherlands, according to the plan filed in US bankruptcy court.
It would have two subsidiaries, which would divide Lyondell's plants between US and non-US assets, according to the filing.
Creditors would be paid in stock issued by the new company.
In addition to stock, creditors could also receive proceeds from a lawsuit filed against some of Lyondell's lenders and executives.
Lyondell Chemical and 93 other subsidiaries of LyondellBasell have filed for bankruptcy protection in the US.
Lyondell has a 15 October deadline to get approval for the plan, according to the terms of its debtor-in-possession (DIP) financing.
The plan needs to be confirmed by 15 December, although the company could receive an extension, according to the DIP terms.
If the plan is confirmed, Lyondell could emerge from bankruptcy protection by the end of January.
Additional reporting by Brian Ford
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