Having rejected Mukesh Ambani-led Reliance Industries’ takeover bid, global petrochemicals giant LyondellBasell on Friday announced tying up $3.25 billion worth of funds and securing court approval for its bankruptcy-exit restructuring plan.
The company said the court has approved its $450-million pact with the creditors, under which they were to support the company’s reorganisation plan.
Following the court’s approval for Lyondell’s reorganisation plan, it would be sent to the company’s creditors for their nod.
Last month, Lyondell said its unsecured creditors had approved the $450-million settlement, which increases the amount they can recover from $300 million planned earlier.
Earlier this week, Lyondell rejected a $14.5-billion takeover bid from Reliance Industries, saying its own reorganisation plan was superior to the offer made by the Indian firm.
Weighed down by massive debts, LyondellBasell’s US operations and one of its European holding companies had filed for Chapter 11 bankruptcy protection in 2009.
The bankrupt petrochemical firm plans to sell senior secured bonds on a private placement basis and borrow through a senior term loan. It also plans to raise $2.8 billion in a rights offering. The net proceeds from the sale of the notes, together with borrowings and proceeds from a $2.8 billion (nearly Rs 12,703 crore) rights offering, would be used to come out from bankruptcy and to repay and replace certain existing debts, the company said.
The court also approved the company to commence the “rights offering to holders of its secured debt, who will be receiving rights under the plan,” Lyondell said.
Lyondell will seek to list its shares on the New York Stock Exchange once the reorganisation plan becomes effective.
As per the court filing, Lyondell would sell 263.9 million Class B shares, most of which will be sold in a rights offering backstopped by private equity firms Apollo Management, Ares Management and Access.