Lyondell's Settlement With Creditors Weakens RIL's Bid
LyondellBasell Inc. has reached a settlement with unsecured creditors to help Lyondell ‘s emergence from Chapter 11. The new agreement increases the amount that will be distributed on the effective date of the Plan to the holders of general unsecured claims, the Millennium Bonds and 2015 Notes from $300 Mn to $450 Mn.
This settlement could possibly dent RIL’s aspirations of acquiring Lyondellbasell. RIL was ready to pay $13.5 Bn to acquire the debt ridden company.The unsecured creditors, who had part - funded the the LBO of Londellbasell were supporting the entry of a new investor in the company.
Lyondell' management is also offering to convert $18-billion debt of secured and unsecured creditors, including bridge loans, into equity. Moreover, the existing promoters will subscribe to a $3-billion rights issue of the company, to continue management control.
However, RIL is also talking to Canada based – Value Creation Inc. for a possible acquisition. RIL is offering $2 Bn for Value Creations, which owns and develops oil sand resources in Canada.
Also Read
Update: RIL Raises Its Offer To Buy LyondellBasell
RIL To Bid For Value Creation Inc
With What RIL's Offering For Lyondell, Its A Pain For Len& Lenders
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