Lyondell settlement with BoNY Mellon approved, reports Bloomberg

Bloomberg reports that Lyondell Chemical’s settlement with creditor Bank of New York Mellon has won approval after the deal was amended so it won’t block any rival offers to finance the bankrupt company’s reorganisation.

US bankruptcy Judge Robert Gerber in Manhattan yesterday approved the agreement, subject to changes that allow the company to consider offers other than a current plan based on a rights offering of new stock. The plan is supported by billionaire Len Blavatnik’s Access Industries, Apollo Management and Ares Corporate Opportunity Fund III.

Unsecured creditors said if the Bank of New York settlement was approved in its original form, it would have forced Lyondell to follow its current reorganisation plan, which is partly based on unsecured creditors settling a lawsuit against senior lenders.

Under the settlement approved yesterday, Bank of New York’s $475 million in Lyondell bonds will be treated the same as similarly ranked debt. Gerber and lawyers did not mention the possibility of a competing offer from India’s Reliance Industries. Reliance said in January it was selling shares to raise money for a bid for LyondellBasell Industries, the Netherlands-based parent of Lyondell.