Lyondell receives non-binding equity acquisition offer from Reliance

By Caroline Salls

Pittsburgh, Nov. 23 - LyondellBasell said it has received a preliminary non-binding equity financing offer from Reliance Industries Ltd. to acquire a controlling interest in LyondellBasell through its Chapter 11 plan of reorganization.

According to a company news release, Reliance would pay cash for the controlling interest.

"This offer is in addition to the previous non-binding equity financing proposals received by the company and represents a potential alternative to the initial plan of reorganization previously filed by the company," LyondellBasell said in the release.

"Consistent with its fiduciary duties, management will continue to work with all parties to design an approach that maximizes value for the company's creditors through the pursuit of a confirmable plan of reorganization and enhances the financial strength of the reorganized company."

In a separate news release, Reliance Industries said the offer is subject to customary conditions, including completion of due diligence and documentation and receipt of sufficient creditor support.

Reliance said it is reviewing several global opportunities for growth in its core business.

Lyondell Chemical Co. 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 in the U.S. Bankruptcy Court for the Southern District of New York. The Chapter 11 case number is 09-10023.

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