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| LyondellBasell to raise $3.2 bn via debt |
| Press Trust of India / New York/New Delhi Mar 12, 2010, 10:55 IST |
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 Global petrochemical major LyondellBasell today said it will raise $3.2 billion (nearly Rs 14,745 crore) through debt and issue of securities on private placement basis, which will be used by the company to come out of bankruptcy.
The company, through its wholly-owned subsidiary, Lyondell Chemical Company, plans to raise $3,250 million by first priority debt, including an offering of senior secured notes on a private placement basis and borrowings under a senior term loan facility, LyondellBasell said in a statement.
Earlier this week, LyondellBasell rejected $14.5 billion takeover offer from Indian giant Reliance Industries, preferring its own restructuring plan to emerge from bankruptcy.
The net proceeds from the sale of the notes, together with borrowings and proceeds from a $2.8 billion (nearly Rs 12,703 crore) rights offering, would be used to come out from bankruptcy, to repay and replace certain existing debt, the company said.
Last month, it reached a settlement with creditors paving the way for coming out of bankruptcy.
As part of the agreement, the Unsecured Creditor's Committee and holders of the company's substantial debt have agreed to support its reorganisation plan.
Weighed down by massive debts, LyondellBasell's US operations and one of its European holding companies filed for Chapter 11 bankruptcy protection in 2009.
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