Bankrupt Lyondell wants until Sept to file reorganisation plan

23 November 2009 22:54  [Source: ICIS news]

HOUSTON (ICIS news)--Lyondell Chemical asked a US court on Monday to give it until 6 September 2010 to gather votes for a reorganisation plan - a key step for it to emerge from Chapter 11 bankruptcy protection.

The current deadline is 15 December.

The deadline also gives Lyondell the sole right to file a reorganisation plan. Once the deadline expires, creditors can file their own reorganisation plans for the company.

Lyondell needs more time because creditors continue to disagree about how much money it should set aside to address any possible claims from a pending lawsuit, the company said.

In the lawsuit, the committee representing unsecured creditors accused company officers of pursuing Lyondell's takeover by Basell, a deal that it said drove the company into bankruptcy.

The bankruptcy court is scheduled to hold a hearing about the new deadline on 15 December.

Lyondell is requesting more time because of the creditor litigation, and not the offer made by Reliance Industries to acquire a controlling stake in the company, said spokesman David Harpole.

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By: Al Greenwood
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