New York: 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 reorganization plan.
Following the court’s approval for Lyondell’s reorganization 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 reorganization 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.