LyondellBasell Gets Funding

A bankruptcy court has approved an $8 billion package of debtor-in-possession (DIP) financing for Lyondell Chemical. DIP financing comprises loans made to bankrupt companies so they can reorganize without being liquidated. DIP creditors are among the first in line for repayment from the bankrupt firm. Lyondell’s parent, LyondellBasell Industries, can use some of the funds for operations outside of the U.S. “This final approval of our DIP credit agreements means that we can turn our full attention to the task of emerging from Chapter 11 protection with a new capital structure and a strengthened business platform,” says Volker Trautz, LyondellBasell’s CEO. Lyondell also won a 60-day injunction that will keep some creditors from going after LyondellBasell Industries.