Lyondell wants limits placed on proposed bankruptcy examiner

21 October 2009 20:04  [Source: ICIS news]

HOUSTON (ICIS news)--Lyondell Chemical wants the bankruptcy court to limit the scope of any examiner appointed to review aspects of its proposed reorganisation, a spokesman said on Wednesday.

A group of unsecured creditors have asked that the bankruptcy court appoint such an examiner.

The examiner would review - among other things - the maturity date of Lyondell's bankruptcy financing, the money being reserved for unsecured creditors and the company's proposed stock offering.

Lyondell said the scope of the examiner should be limited to the stock offering. Lyondell plans to issue stock as part of its proposed plan to emerge from bankruptcy protection.

The examiner would confirm the integrity of what Lyondell said was already an unassailable process.

That process includes finding a firm that would agree to purchase any unsold shares, and finding a sponsor that would provide a positive outlook for the stock offering.

Lyondell has yet to choose either a sponsor or a firm that would buy any unsold shares, the company said.

Regarding the money left to unsecured creditors, the topic was already addressed by the reorganisation plan, Lyondell said.

The creditor group has repeatedly objected to the maturity date of the bankruptcy financing, Lyondell said. The court has repeatedly ruled against them.

As such, appointing an examiner to review the topic once more would be a waste, Lyondell said.

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By: Al Greenwood
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