Home / Knowledge / News / Textiles / Bankruptcy Court confirms LyondellBasell reorganization plan

Bankruptcy Court confirms LyondellBasell reorganization plan

24
Apr '10
The United States Bankruptcy Court for the Southern District of New York confirmed LyondellBasell's Plan of Reorganization. The Plan received broad-based support from virtually all creditor classes entitled to vote on the Plan. LyondellBasell affiliates currently in voluntary reorganization are projected to emerge from Chapter 11 protection on April 30, 2010.

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

"We emerge from Chapter 11 as a stronger company and business partner. Our industry-defining technologies, global reach and focus on operational excellence will provide LyondellBasell with a bright future," Gallogly said. "Through this reorganization we have solidly positioned the company to be an industry leader with a significantly improved balance sheet, excellent liquidity, a more efficient organizational structure, and a new management team."

Sound Capitalization and Lower Debt
In conjunction with the emergence from Chapter 11, LyondellBasell raised $3.25 billion of first priority debt, including $2.25 billion and Euro375 million offerings 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 net proceeds from the sale of the notes, together with borrowings under the term loan, a new European securitization facility, and proceeds from a $2.8 billion rights offering, will be used to repay and replace certain existing debt, including debtor-in-possession credit facilities and an existing European securitization facility, and to make certain related payments.

Upon emergence from Chapter 11, the company expects to have approximately $7.2 billion of total consolidated debt and approximately $5.2 billion of net consolidated debt, including approximately $2 billion of cash and cash equivalents. There will also be approximately $2.4 billion of lending commitments under an asset backed lending facility in the U.S.and a European revolving trade accounts receivable securitization, of which approximately $1 billion will be undrawn at emergence. When LyondellBasell filed for Chapter 11, it had consolidated debt of approximately $24 billion.

"Our reorganization plan significantly de-levers our capital structure," Gallogly said.

Plan Distributions
Under the Plan, administrative and priority claims, as well as the new money debtor-in-possession (DIP) financing will receive payment in full. DIP roll-up lenders will be issued new notes in the same principal amount. Holders of senior secured claims will receive approximately 93 percent of the Class A shares of the new holding company in exchange for their claims. Most allowed general unsecured claims will receive a pro-rata distribution of cash and Class A shares under the terms of a settlement among LyondellBasell and its creditor constituencies. Holders of subordinated claims, securities claims and equity claims will not receive or retain any interest or property under the Plan of Reorganization.


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 23rd Jun 2021

Bangladesh looking to export resortwear & leisurewear to Maldives

The Bangladesh Garment Manufacturers and Exporters Association...

Pic: JHVEPhoto / Shutterstock.com

Fashion | On 23rd Jun 2021

PVH Corp to sell Van Heusen, Arrow brand trademarks to ABG

US’ clothing firm PVH Corp has entered into a definitive agreement to ...

Pic: Filati Biagioli Modesto

Fashion | On 23rd Jun 2021

Italian fashion houses Prada & Zegna acquire Filati Biagioli Modesto

Italian fashion companies Prada Group and Ermenegildo Zegna Group...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Strike a balance between handmade in India and 'Make in India'

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchains will be in heavy use by early adopters by 2025

Textile Industry, Head honchos

Textile Industry
Head honchos

Multi-functional garments will be next big thing

Sanjay Jhunjhunwalla,

Sanjay Jhunjhunwalla

In the financial hub of eastern India, Kolkata, a humble production...

C Maennich,

C Maennich

Trützschler, one of the world's leading textile machinery manufacturers,...

Shambhu Nath Jha,

Shambhu Nath Jha

Leading research and consulting firm Fact.MR recently launched a report on ...

Jacques Prigneaux, EDANA

Jacques Prigneaux
EDANA

EDANA has been the leading global association and voice of the nonwovens...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Megha Kumari & Jigar Mali, Label Megha & Jigar

Megha Kumari & Jigar Mali
Label Megha & Jigar

New Delhi based label Megha & Jigar blends India's unique handcrafts...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search