Global petrochemical major LyondellBasell, whose majority stake Reliance Industries (RIL) is looking to buy, today said it has reached a settlement with creditors paving the way for the company to exit bankruptcy.
As part of the agreement, the Unsecured Creditor's Committee and holders of the company's substantial debt have agreed to support its reorganisation plan, a statement by LyondellBasell said.
Weighed down by massive debts, LyondellBasell's US operations and one of its European holding companies had filed for Chapter 11 bankruptcy protection in 2009.
In November last year, LyondellBasell and Mukesh Ambani-led RIL disclosed a "preliminary non-binding offer" by the Indian firm for taking a majority stake in the chemical major.
Going by industry sources, RIL's bid could be more than $12 billion.
The new agreement with creditors increases the amount from $300 million to $450 million that would be distributed to the holders of general unsecured claims, the millennium bonds and 2015 notes. The extra $150 million would be paid in the form of reorganised equity.
The company said the dispute between unsecured creditors and these defendants has been limiting its ability to complete approval of disclosure statement and reorganisation plan.
LyondellBasell pointed out that it would continue to work with all parties to design a confirmable reorganisation plan that maximises value for creditors.
The US-based company is privately owned by ProChemie GmbH, a JV of Access Industries and ProChemie Holding.
