US Lyondell gets more time to file reorganisation plan

19 January 2010 20:31  [Source: ICIS news]

HOUSTON (ICIS news)--A bankruptcy court on Tuesday gave Lyondell Chemical more time to exclusively file a reorganisation plan.

Lyondell now has until 15 April to file the plan. During that time, no other competing reorganisation plans can be filed with the court.

Earlier Lyondell had proposed a 6 September deadline.

Spokesman David Harpole said, "We continue to work with all parties to design a plan that maximises value for our creditors and enhances the financial stability of the reorganised company."

Lyondell's plan calls an debt-for-equity exchange with creditors. In addition to the exchange, Lyondell would also raise $2.8bn (€1.9bn) in equity, money that would help fund its emergence from bankruptcy protection.

After filing the reorganisation plan, the court would confirm it.

Lyondell could have its reorganisation plan confirmed by 20 May, the company said in court documents. Following confirmation, Lyondell could emerge from bankruptcy protection.

In other news, the court rejected a request by unsecured creditors to expand the scope of an examiner appointed to review aspects of the bankruptcy.

A summary of the examiner's report raised no red flags in the bankruptcy.

($1 = €0.69)

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By: Al Greenwood
+1 713 525 2645

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