New York: Global petrochemical major
LyondellBasell today said it has received creditors` support
for the restructuring plan, which will help the company to
come out of bankruptcy.
Indian conglomerate Reliance Industries is bidding for a
majority stake in LyondellBasell and both companies had
entered into a preliminary non-binding offer.
The petrochemical firm has filed a motion in the US
bankruptcy court to settle various claims from creditors.
LyondellBasell has sought the court`s approval for Lender
Litigation Settlement, Equity Commitment Agreement (ECA) and
Plan Support Agreement (PSA), it said in a statement.
Under the ECA, a group consisting of an affiliate of
Apollo Management VII, LP; an affiliate of Access Industries;
and Ares Corporate Opportunities Fund III, LP have agreed to
backstop the equity rights offering contemplated by the
The entity which backstops takes the risk of supporting
the valuation of shares even if the scrips trade below the
"The plan contemplates that an aggregate of USD 2.8
billion will be raised through the purchase of equity
contemporaneously with emergence from Chapter 11," it added.
Moreover, the ECA does not prohibit the company from
"considering other bona fide proposals it may receive with
respect to the purchase of its equity upon emergence".