Lyondell Outlines Reorganization Plan, Rejects Reliance Bid
Bankrupt petrochemicals firm LyondellBasell outlined a re-organizing plan that according to it was a better option compared to a $14.5 billion bid from Indian energy major Reliance Industries, court documents depicted.
Luxembourg-headquartered Lyondell posted in a disclosure statement lodged with a U. S. bankruptcy court on Monday that Reliance's offer was not sufficient to abandon the restructuring plan.
As part of its reorganization plan, Lyondell is revealed to sell 263.9 million Class B shares, majority of which will be sold in a rights offering backstopped by private equity firms Apollo Management, Ares Management and Access.
Apollo can invest up to $1.52 billion, while Ares can invest up to $475.7 million and Access can invest up to $805.9 million, the court documents show.
If the deal succeeds, it would take the world's largest petrochemical company ahead of BASF and Dow Chemical, with revenues of more than $80 billion and would have granted RIL access to improved technology and refineries in Europe and the US.
The case is In re: Lyondell Chemical Co, U. S. Bankruptcy Court, Southern District of New York, No. 09-10023.
