LyondellBasell adds European holding company to Chapter 11 bankruptcy

By Caroline Salls

Pittsburgh, April 24 - LyondellBasell Industries AF SCA has been added to Lyondell Chemical Co.'s Chapter 11 bankruptcy case to protect the European holding company against claims by financial and U.S. trade creditors, according to a LyondellBasell Industries news release.

LyondellBasell said it is exercising an option available under U.S. law to prevent creditors from enforcing LyondellBasell AF's guarantees of LyondellBasell's pre-bankruptcy U.S. business obligations.

The protection also prevents holders of the company's senior notes due 2015 from potentially seeking remedies against LyondellBasell AF after an interest payment due on the notes in February was not made.

According to the release, the company obtained a 60-day restraining order from the U.S. Bankruptcy Court for the Southern District of New York in February to allow time for LyondellBasell to protect its European assets from these claims.

"LyondellBasell continues to conduct business worldwide while the company develops its reorganization plan as part of the Chapter 11 process," chief operating officer Ed Dineen said in the release.

"All LyondellBasell companies remain committed to maintaining mutually beneficial relationships with suppliers and to serving customers as they did before this voluntary action."

LyondellBasell Industries AF is a holding company incorporated in Luxembourg, which does not manufacture or sell products and has no employees.

LyondellBasell is a Netherlands-based polymer, petrochemicals and fuels company. The Chapter 11 case number is 09-10023.

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