LyondellBasell Emerges From Chapter 11 Protection
May 2, 2010
ROTTERDAM, The Netherlands -- LyondellBasell has emerged from Chapter 11 bankruptcy protection. The company's Plan of Reorganization was confirmed last week by the United States Bankruptcy Court for the Southern District of New York with the approval of an overwhelming majority of the voting creditor classes.
LyondellBasell has a significantly improved financial position at emergence, with approximately $5.2 billion of net consolidated debt and approximately $3 billion of opening liquidity. As part of its exit financing, LyondellBasell raised $3.25 billion of first-priority debt as well as $2.8 billion through a rights offering. The proceeds from the sale of notes, borrowings under a term loan, an asset-based lending facility, a new European securitization facility and the rights offering proceeds were used to pay and replace certain existing debt and other obligations.
LyondellBasell issued approximately 564 million shares of common stock under its Plan of Reorganization. This included stock issued in exchange for allowed claims as well as through a rights offering. The company is arranging for the stock to be publicly traded on the New York Stock Exchange with the goal of being listed by the third quarter of 2010.
A new parent company, LyondellBasell Industries N.V., incorporated in the Netherlands, is the successor of the former parent company, LyondellBasell Industries AF S.C.A., a Luxembourg company that is no longer part of LyondellBasell. LyondellBasell Industries N.V. owns and operates substantially the same businesses as the previous parent company, including subsidiaries that were not involved in the bankruptcy cases. LyondellBasell's corporate seat is Rotterdam, Netherlands, with administrative offices in Houston and Rotterdam.
LyondellBasell is one of the world’s largest chemical companies, with 2009 sales of $30.8 billion. The company manufactures products at 59 sites in 18 countries, including joint ventures. Key uses for LyondellBasell's products include rigid and flexible packaging, transportation fuels, containers, plastic pipe, detergents, cosmetics, electronics, appliances, automotive parts, paint and coatings, furnishings, construction and building materials, and other industrial and consumer goods applications.