NewsFlashLyondellBasell leaves bankruptcy, ending 16-month stint

30 April 2010 19:56  [Source: ICIS news]

HOUSTON (ICIS news)--LyondellBasell left Chapter 11 bankruptcy protection on Friday, ending  one of the biggest and quickest chemical reorganisations in US history.

LyondellBasell could now proceed to be listed on the New York Stock Exchange, which could happen in the third quarter.

LyondellBasell was created in December 2007 with the merger of Lyondell Chemical and Basell. The deal created the world's third largest independent chemical company, with 2009 sales of $30.8bn (€23.4bn).

Roughly a year after its merger, LyondellBasell filed for bankruptcy protection in January 2009. The company had consolidated debt of roughly $24bn, making it the largest chemical bankruptcy after Texaco.

Its 16-month stint in bankruptcy protection made it one of the quickest reorgansiations among chemical manufacturers.

Since filing for bankruptcy protection, Lyondell was under much pressure to reorganise as quickly as possible.

Lyondell estimated that each month in Chapter 11 cost the company $50m.

Longer term, an extended stay in bankruptcy could damage Lyondell's reputation as customers, vendors and employees could gradually lose confidence.

($1 = €0.76)

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By: Al Greenwood
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