Bankruptcy Court confirms LyondellBasell reorganization plan

24 Apr '10

4 min read

The organizational structure of the company in North America will be simplified by the removal of 90 legal entities. The ultimate ownership of 49 of these entities (identified as Schedule III Debtors in the Plan) will be transferred to a new owner, the Millennium Custodial Trust, a trust established for the benefit of certain creditors, and these entities will no longer be part of LyondellBasell. In addition, certain real properties owned by the Debtors, including the Schedule III Debtors, will be transferred to the Environmental Custodial Trust which will own and remediate these properties. Any associated liabilities of the entities transferred to and ultimately owned by the Millennium Custodial Trust will be the responsibility of those entities and claims regarding those entities will be resolved solely using their assets and the assets of the trust. In total, $250 million of cash will be used to fund the two trusts, including approximately $80 million to the Millennium Custodial Trust and approximately $170 million to fund the Environmental Custodial Trust and to make certain direct payments to the Environmental Protection Agency and certain state environmental agencies.

LyondellBasell Industries

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