LyondellBasell Files For Chapter 11 Bankruptcy Protection

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The US operations of LyondellBasell Industries and Basell Germany Holdings, one of its European holding companies, have filed for Chapter 11 protection in US bankruptcy Court in New York. They have filed for voluntary reorganisation while continuing operations and its relationships with customers and suppliers. They will be working on restructuring their debt to position their business for the long term. The company announced that it has made arrangements for up to US$ 8 billion in debtor-in-possession financing to fund ongoing operations, subject to the approval of the bankruptcy court. Of this amount, US$ 3.25 billion represents new funding, US$ 3.25 billion represents refinancing of certain obligations under existing senior secured credit facilities and the balance US$ 1.5 billion represents replacement of existing working capital facilities.
LyondellBasell is the world’s largest manufacturer of polyolefins and the world’s largest producer of polypropylene (PP). It is also North America’s second largest producer of both LDPE and HDPE. It was formed in 2007 with Basell International Holdings’ buyout of Lyondell Chemicals for US$ 12.7 billion. In February 2008, the company added to its compounding capacity by buying out US Solvay Engineered Polymers, a major PP compounder.