New Delhi: Amid reports that Indian corporate giant Reliance Industries Ltd (RIL) was mobilising funds for its acquisition, global petrochemical major LyondellBasell has said that it has not yet received a final bid.
“Reliance has not made a final bid, it has made only a preliminary non-binding offer,” said a spokesperson for LyondellBasell, currently fighting to get out of bankruptcy.
In reply to emailed queries, the company spokesperson said that a settlement agreement has been reached between LyondellBasell and the financial party defendants in the litigation brought by the unsecured creditor’s committee on behalf of the bankruptcy estate.
“The proposed settlement, which must be approved by the bankruptcy court, calls for a cash payment of $300 million to unsecured creditors upon the company’s exit from bankruptcy.
LyondellBasell and RIL late last month disclosed a ‘preliminary non-binding offer’ by the Indian company for taking a controlling interest in the world’s third largest independent chemical maker. Going by industry sources, Reliance Industries’ bid could be more than $12 billion.
Asked about the financial details of the proposed bid from RIL, the spokesperson said: “We are bound by a confidentiality agreement and will provide no further information.”
Lyondellbasell has said that RIL’s offer was in addition to the previous non-binding equity financing proposals received by the company and represents a potential alternative to the initial plan of reorganisation previously filed by the company.
Regarding the bankruptcy restructuring process, the LyondellBasell official said that the company could file a motion on the final settlement in the coming days.
“We will not speculate on possible timing. We expect to file a motion on the settlement in the coming days. We will also proceed with an amended Disclosure Statement and Plan of Reorganisation,” the official noted.
Without disclosing the names or number of options considered for restructuring, the spokesperson asserted the firm would work with all parties to design a reorganisation plan to benefit creditors and improve its financial stability.
LyondellBasell’s US operations and one of its European holding companies filed for chapter-11 bankruptcy protections this year, bogged down by a massive debt load and declining demand.
The Netherlands-headquartered company, but based in the US, is privately owned by ProChemie GmbH, a joint venture (JV) of Access Industries and ProChemie Holding Ltd.