ROTTERDAM, Netherlands – Jan. 8, 2009 – LyondellBasell Industries announced today that its U.S. operations and its German-based holding company (collectively "Lyondell Chemical") have received interim Court approval of the first-day motions, including permission to continue certain employee wages, salary and benefits programs and fund certain taxes.
At the same time, Lyondell Chemical received interim authorization to use up to $3.682 billion of its committed debtor-in-possession (DIP) facility to fund post-petition obligations in the ordinary course of business. The company has commitments for up to $4.765 billion in new DIP financing from a group of lenders. The final DIP hearing has been scheduled for Feb. 4, 2009. Up to €440 million of the DIP facility is authorized to be invested in non-U.S. subsidiaries.
Lyondell Chemical also received interim authorization to maintain administrative functions such as its cash management system and the ability to fund insurance obligations, among other things.
The first-day relief, approved today by the U.S. Bankruptcy Court for the Southern District of New York in Manhattan, will help ensure that both the U.S. operations and LyondellBasell’s global operations continue without interruption.
"We are gratified to have received the Court’s immediate approval of the first-day motions and the financing we need to run the business as close to normal as possible," said Volker Trautz, chief executive officer. "This puts us on a strong footing in the earliest days of our restructuring."
Trautz said that there have been discussions with many raw materials and maintenance suppliers, and that they had expressed their support for the company. "We expect suppliers to continue providing the raw materials and services we need to operate our facilities at pre-petition levels," he said.
LyondellBasell’s U.S. operations and one of its European holding companies voluntarily filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code on Jan. 6 in order to facilitate a restructuring of its debts. A complete list of the filing entities and other information related to the Chapter 11 cases can be found through a link at the company’s website, www.lyondellbasell.com. The company has also established a Restructuring Information Line, which is 866-964-5615, or in Houston, 713-309-4512. Outside the United States, callers can dial +1 713-309-4512 (English only).
LyondellBasell Industries is one of the world's largest polymers, petrochemicals and fuels companies. The company is the global leader in polyolefins technology, production and marketing; a pioneer in propylene oxide and derivatives; and a significant producer of fuels and refined products, including biofuels. Through research and development, LyondellBasell develops innovative materials and technologies that deliver exceptional customer value and products that improve quality of life for people around the world. Headquartered in The Netherlands, LyondellBasell (http://www.lyondellbasell.com/) is privately owned by Access Industries, which was founded in 1986 by U.S. industrialist Leonard Blavatnik. LyondellBasell employs approximately 7,800 people in nearly 30 locations throughout the United States. Altogether the company employees approximately 16,000 worldwide at more than 60 locations.
This press release contains forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by the forward-looking statements. Assumptions and other important factors that could cause our actual results to differ materially from those anticipated in our forward-looking statements include, among other things: (i) the ability of LyondellBasell to develop, prosecute, confirm and consummate one or more Chapter 11 plans of reorganization; (ii) the potential adverse impact of the Chapter 11 filing on LyondellBasell’s operations, management and employees, and the risks associated with operating businesses under Chapter 11 protection; (iii) the ability of LyondellBasell to comply with the terms of the DIP financing facility; (iv) the availability, cost and price volatility of raw materials and utilities; (v) uncertainties associated with the United States and worldwide economies, including those due to political tensions in the Middle East and elsewhere; (vi) the supply and demand balances for LyondellBasell’s and its joint ventures’ products, and the related effects of industry production capacities and operating rates; (vii) legal, tax and environmental proceedings; (viii) the cyclical nature of the chemical and refining industries; (ix) operating interruptions, including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks; (x) current and potential governmental regulatory actions in the United States and in other countries; (xi) terrorist acts and international political unrest; (xii) competitive products and pricing pressures; (xiii) risks of doing business outside the United States, including foreign currency fluctuations; (xiv) LyondellBasell’s ability to service its substantial indebtedness; (xv) available cash and access to capital markets; (xvi) customer response to the Chapter 11 filing; and (xvii) the risk factors or uncertainties listed from time to time in Lyondell Chemical Company's filings with the Securities and Exchange Commission and with the U.S. Bankruptcy Court in connection with the company's Chapter 11 filing. Other factors and assumptions not identified above are also relevant to the forward-looking statements, and if they prove incorrect, could also cause actual results to differ materially from those projected.
Forward-looking statements speak only as of the date of this release. We disclaim any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based.