US operating arm of Lyondell to become public company

Various sources report that bankrupt chemical giant, Lyondell Chemical, will become a public company with its shares traded on the New York Stock Exchange as part of its plan to emerge from bankruptcy.

The company became a private company when it merged with Basell in 2007. The share offering will provide Lyondell with the funds necessary to exit bankruptcy.

Under the reorganisation plan, Lyondell will repay the new money it borrowed as part of its debtor-in-possession financing, and pre-petition lenders whose debt was rolled up in seniority as part of the DIP will also receive payment in full, in either new notes or in cash. Pre-petition senior lenders will receive new common shares in the reorganised company.