Lyondell gets court nod to exit bankruptcy

NEW YORK: The bankrupt petrochemicals major LyondellBasell, which was the target of a failed takeover attempt by Reliance Industries recently, today said it has got court approval for its proposed restructuring plan for exiting bankruptcy.

In a statement LyondellBasell said, the bankruptcy court for the southern district here has approved its reorganisation plan and it is expecting to come out of the Chapter 11 protection on April 30.

"We are extremely proud to announce that in the short period of 15 months, LyondellBasell is poised to exit from Chapter 11. We are equally grateful to our creditors for the confidence they have expressed in our reorganisation by voting overwhelmingly to support our plan, and to our customers and our suppliers for their support during this unprecedented period in our history," LyondellBasell chief executive Jim Gallogly said.

The company has raised $3.25 billion through debt and issue of securities on private placement basis which would be used to come out of bankruptcy.

"LyondellBasell raised $3.25 billion of first priority debt, including $2.25 billion and 375 million euro offering of senior secured notes in a private placement and borrowings of $500 million under a senior term loan facility as part of its exit financing," the company said.

Weighed down by massive debts, LyondellBasell's US operations and one of its European holding companies filed for Chapter 11 bankruptcy protection in 2009.

Last month, LyondellBasell rejected $14.5-billion takeover offer from Reliance Industries, preferring its own restructuring plan to emerge from bankruptcy.