LyondellBasell (Rotterdam / The Netherlands; www.lyondellbasell.com) has filed its reorganisation plan in New York and asked the bankruptcy court to extend its deadline for exiting Chapter 11 until September 2010. This will buy time to whittle down the group’s enormous debt and weigh the benefits of takeover bids such as the USD 12 bn preliminary offer expected from India’s Reliance (RIL, Mumbai; www.ril.com) – see Plasteurope.com of 23.11.2009.

LyondellBasell’s original target to exit Chapter 11 was the end of 2009; however, in late November a US spokesman said management “is no longer speculating on the timing.” Over the nine-month period, the group will have to deal with a lawsuit brought by unsecured creditors. It has proposed to settle out of court in exchange for a USD 300m payment. The creditors’ committee is opposing the plan, however, and reports say it is likely to favour the Reliance bid.

As part of the nearly USD 26m overall debt burden it is carrying, LyondellBasell also is shouldering USD 8 bn in debtor-in-possession (DIP) that must be repaid in cash or returned in the form of equity to lenders – including sponsors of a USD 2.8 bn rights issue.

Some observers see a fight shaping up over who will control the polyolefins producer. The Indian conglomerate, which reports say has been trying to secure financing but has declined to take over debt, has not yet commented on the reorganisation plan. LyondellBasell also has sidestepped the issue of whether the Chapter 11 extension means it opposes a takeover. The plan “does not preclude Reliance making a bid,” a spokesman said. “If there is a superior bid, there is an option to take it on.”