By Malini Hariharan
Yesterday's media report about Reliance Industries on the verge of taking a final decision on LyondellBasell appears to have been a little premature. My sources say that a decision will be made only after the US bankruptcy court decides on a restructuring plan put forward by LyondellBasell.
The company filed a revised plan last Friday. The court is due to hear today a petition filed by LyondellBasell asking for an extension until 6 September for the exclusive right to propose a reorganization plan.
The court's decision will give more clarity to Reliance, says a source familiar with developments. If the revised plan is approved then Reliance does not have much of a chance to participate in LyondellBasell's restructuring unless invited by the current management.
But the source said that as creditors are not happy with the revised plan, Reliance has a good chance. However, Reliance still needs to do a full due diligence and only then can it take a call on whether to submit its own plan for reorganizing LyondellBasell.
The source also said that last week's meetings in the US were 'not very fruitful' as not much information was shared. 'The [LyodellBasell] management is keen on keeping control," he added.