US court ruling crucial to Reliance's bid for LyondellBasell

15 December 2009 08:00  [Source: ICIS news]

By Malini Hariharan

MUMBAI (ICIS news)--India’s Reliance Industries is likely to wait for the outcome of a US Bankruptcy Court hearing scheduled to start later on Tuesday before deciding on a final bid for LyondellBasell, a source close to the development told ICIS news.

“That will give more clarity. If the revised plan is accepted, then there is not much scope for Reliance [participation] unless the current management wants to bring in Reliance,” the source said.

LyondellBasell filed last week a revised reorganization plan, which includes a $2.8bn (€1.9bn) rights issue. At the court hearing, the company is expected to request ample time to gather votes for its plan up to 6 September 2010.

The Indian conglomerate, however, still has a chance since creditors were not happy with LyondellBasell’s revised plan, the source said.

“Once Reliance is allowed to do due diligence then it can take a call on submitting its plan for LyondellBasell. Last week’s meetings were not very fruitful as not much information was shared,” he added.

The top executives of the two companies met in Houston last week to discuss Reliance’s proposed bid for LyondellBasell.

($1 = €0.68)

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By: Malini Hariharan
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