Lyondell creditors seek examiner of reorganisation plan

06 October 2009 00:07  [Source: ICIS news]

HOUSTON (ICIS news)--A creditor group in the Lyondell bankruptcy wants the court to appoint an examiner who would investigate aspects of the company's proposed reorganisation plan, according to a filing made on Monday.

The same group is suing the lenders and executives involved in Lyondell's merger with Basell. The creditors alleged that the merged company was laden with too much debt, driving it into bankruptcy.

In its request for an examiner, the creditors alleged that Lyondell had refused to develop a strong reorganisation plan that would leave an appropriate reserve for unsecured creditors.

If appointed, the examiner would investigate the reserve, as well as Lyondell's refusal to refinance its debtor-in-possession (DIP) loan. Refinancing the loan could provide the creditors with more time to pursue their lawsuit.

The group also wants the examiner to investigate Lyondell's selection of a rights offering sponsor. The sponsor is a group of investors - two of which have ties to those being sued by the creditors.

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By: Al Greenwood
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