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Lyondell gets court OK for equity commitment, disclosure statement
By Lisa Kerner
Charlotte, N.C., March 11 - Lyondell Chemical Co. was granted approval to enter into an equity commitment agreement with a group consisting of an affiliate of Apollo Management VII, LP, an affiliate of Access Industries and Ares Corporate Opportunities Fund III, LP, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.
The group, under the agreement, agreed to backstop the equity rights offering included in the company's amended plan of reorganization by purchasing any shares of common stock not subscribed for by senior creditors.
As previously reported, a total of $2.8 billion will be raised through the purchase of equity under the plan.
The court also approved the company's disclosure statement on Thursday.
The hearing to confirm the company's plan of reorganization will begin on April 23.
Lyondell said in a news release that holders of a majority of its prepetition senior and bridge debt have agreed to support the plan, as have a majority of holders of its 2015 notes and its Millennium notes, the indenture trustees for each of the 2015 notes and the Millennium notes, and the official committee of unsecured creditors.
LyondellBasell said it can now begin to solicit acceptances of the plan and the rights offering to holders of its senior secured debt.
The deadline for voting and exercising rights is April 15.
Lyondell is a U.S. subsidiary of LyondellBasell Industries AF SCA, a Netherlands-based polymer, petrochemicals and fuels company. LyondellBasell's U.S. operations and one of its European holding companies filed for bankruptcy on Jan. 6, 2009. The Chapter 11 case number is 09-10023.
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