LyondellBasell continues to progress toward emergence from Chapter 11. We filed our Disclosure Statement and Plan of Reorganization on Sept. 11, 2009 and amended these documents on Dec. 11 and Dec. 24. These documents provide details on how the new company will be organized and our anticipated capital structure.
We believe that our amended plan has the support of the majority of our secured lenders and is in the best interests of our creditors and our estate. A hearing date for confirmation of the Disclosure Statement has been scheduled for February.
We have made considerable progress in addressing the Chapter 11 requirements within our control. In addition to meeting all milestones including the Disclosure Statement and Plan of Reorganization:
- We have been reviewing, analyzing, negotiating and assuming or rejecting executory contracts and addressing proofs of claim;
- We have developed a plan for raising new debt and new capital on emergence;
- We have reached a proposed settlement with the financial party defendants in the litigation brought by the Unsecured Creditors Committee on behalf of our estate. The proposed settlement must be approved by the bankruptcy court and a hearing has been scheduled in February.
- We continue to take necessary steps while we await the resolution of external factors beyond our control. Our lenders have approved an extension of our debtor in possession loan maturity to April 6, which provides us with additional flexibility while our creditors try to resolve their differences.
LyondellBasell voluntarily filed to reorganize its U.S. operations and one of its European holding companies under Chapter 11 of the U.S. Bankruptcy Code on Jan. 6, 2009 in order to restructure the company’s debts. On April 24, LyondellBasell’s parent company and its general partner were voluntarily added to the Chapter 11 reorganization filing. On May 8, 13 additional entities were added to the Chapter 11 filing. The United States Bankruptcy Court for the Southern District of New York is administering this restructuring and reorganization process.
As part of the Chapter 11 process, LyondellBasell obtained approximately $8 billion in debtor-in-possession (DIP) financing to fund continuing operations. The DIP financing includes two credit agreements: a $6.5 billion term loan (comprising $3.25 billion in new loans and a $3.25 billion roll-up of existing loans) and a $1.62 billion asset-based lending facility.
You will find general information about the Chapter 11 process below.
You may also view additional information by clicking on the following links:
We have established a special restructuring information line for employees, retirees, customers, suppliers and others who have questions related to the filing. (English only) Depending on your location, the hotline numbers are:
- Within the United States: 866-964-5615
- Outside the United States: +1 713 309 4741
Plan of Reorganization Questions and Answers
1. What is included in the Plan of Reorganization and Disclosure Statement?
The Plan of Reorganization designates the classes of creditors and defines how those creditors will be treated or how their claims will be resolved. It also provides a summary of how the new company and its legal structure will be organized.
The Disclosure Statement summarizes the plan and the Chapter 11 case, and describes the structure of the post-Chapter 11 enterprise.
2. How much money will the Plan give to creditors?
The final amounts or recovery percentages that will be allocated to various creditors have not yet been determined.
3. What are the creditor classes and how are they determined?
The Bankruptcy Code dictates the order of payment of creditor claims and not all claims are equal. Generally, similar claims are grouped into classes and claims within a class receive equal treatment.
4. Is this the final Plan of Reorganization?
We have the opportunity to amend the plan as necessary and appropriate.
What You Need to Know About Chapter 11
What is Chapter 11?
Chapter 11 is a legal mechanism for court-supervised reorganization or restructuring of a company's obligations. Chapter 11 provides companies the time and resources to restructure their debts while continuing day-to-day operations.
What happens during Chapter 11?
The Chapter 11 filing triggers an "automatic stay" that prevents anyone from collecting debts owed by the company prior to the filing of the Chapter 11 petition, such as payments to creditors and bondholders.
Chapter 11 permits and encourages daily operations to continue as usual or as close usual as possible. While business continues, management works with the company’s creditors on finalizing a plan to restructure the company’s debt obligations. The restructuring plan is called a Plan of Reorganization. When the creditors approve and the Bankruptcy Court accepts the Plan, it is said to be "confirmed" and at that time LyondellBasell emerges from Chapter 11 with restructured financing arrangements.
Additional frequently asked questions are available here.