UpdateKey Lyondell bankruptcy hearing moved to 12 January

15 December 2009 18:09  [Source: ICIS news]

Crucial hearing date moved(adds updates throughout)

HOUSTON (ICIS news)--The bankruptcy court adjourned to 12 January a crucial hearing for LyondellBasell that would determine whether the company will have until 6 September to solicit votes for a reorganisation plan compiled solely by the firm, a company spokesman said on Tuesday.

The outcome of the hearing is a key consideration for Reliance Industries, which has made a preliminary nonbinding offer for a controlling interest in LyondellBasell, a source told ICIS news.

The hearing was initially scheduled for Tuesday.

Lyondell wants the exclusive right to file its own reorganisation plan, a move that would bar creditors from submitting a competing plan.

Moreover, Lyondell wants to have until 6 September to solicit votes for the plan. The company wants the 6 September deadline because it will provide Lyondell with the maximum amount of time to solicit the votes, said David Harpole, company spokesman.

In other news, Lyondell's lenders have approved the extension of the maturity date of the company's debtor-in-possession (DIP) financing, Harpole said. The new date is 6 April.

DIP financing funds the day-to-day operations of a company operating under Chapter 11 bankruptcy protection.

For more on Lyondell or Reliance visit ICIS company intelligence
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