New York: Dutch Petrochemicals major LyondellBasell, which turned down a takeover offer from Reliance Industries recently, has emerged from bankruptcy protection after a 16-month period.
“This marks a new beginning for LyondellBasell. We emerge from bankruptcy as a stronger, leaner, more competitive company, with an improved balance sheet and liquidity, intent on making LyondellBasell the industry leader,” LyondellBasell CEO Jim Gallogly said in a statement on Friday.
The Netherlands-based LyondellBasell’s European finance division and American operations had filed for bankruptcy protection on 6 January, 2009, due to weak sales and high debt.
The company’s plan of reorganisation was confirmed last week by the United States Bankruptcy Court for the Southern District of New York with the approval of an overwhelming majority of the voting creditor classes.
LyondellBasell has a significantly improved financial position at emergence, with around $5.2 billion of net consolidated debt and about $3 billion of liquid assets.
As part of the company’s plan to exit Chapter 11 protection, LyondellBasell has raised $3.25 billion of debt as well as $2.8 billion through a rights offering.
LyondellBasell issued around $564 million shares as a part of the company’s reorganisation plan. Apart from raising money, the stock issuance allowed it to exchange its debt for equity in the company.
In addition, the petrochemical firm is aiming to list on the New York Stock Exchange by the third quarter of this year.
The restructuring plan created a new parent holding company, LyondellBasell Industries, incorporated in the Netherlands.
LyondellBasell was formed in December 2007 with the acquisition of Lyondell Chemical Company by Basell Polyolefins. The deal created the world’s third largest independent chemical company, with sales of $30.8 billion in 2009.
In March, LyondellBasell rejected a $14.5-billion takeover offer from Reliance Industries, preferring its own restructuring plan to emerge from bankruptcy.