06 October 2009 22:38 [Source: ICIS news]
HOUSTON (ICIS news)--A US court changed on Tuesday a key date in Lyondell Chemical's emergence from bankruptcy protection, one of several interim steps the company plans to take as it aims for a January exit.
Lyondell had earlier planned to emerge from bankruptcy protection by the end of December.
The company is now planning to exit bankruptcy by the end of January, said spokesman David Harpole.
The later date would give Lyondell more time to arrange exit financing and a rights offering, he said. Also, the timeline of a creditor lawsuit played a role in moving the date.
The move, however, requires several procedural steps.
One such step was taken on Tuesday when a US bankruptcy court moved a hearing date to 4 November from 14 October. The hearing concerns Lyondell's disclosure statement.
Ultimately, Lyondell plans to move to 4 December a deadline to get approval for its disclosure statement, Harpole said. Currently, the deadline is 15 October.
The disclosure statement provides creditors with information about the affairs of a company in bankruptcy protection. Approval of the disclosure statement typically precedes the confirmation of a reorganisation plan.
Lyondell plans to seek a 20 January deadline to have its reorganisation plan confirmed by the court, Harpole said.
Currently, that deadline is 1 December.
The new deadlines should benefit everyone involved in the bankruptcy, Harpole said.
The deadlines are imposed by the terms of Lyondell's bankruptcy financing. The financing matures on 15 December.
Lyondell is exploring options of extending its bankruptcy loans, Harpole said.
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