Apr 30, 2010
LyondellBasell Emerges from Bankruptcy
Cadwalader, Wickersham & Taft LLP successfully completed the global reorganization of chemical company giant LyondellBasell as the company emerges today from its rehabilitative stay in Chapter 11.
“LyondellBasell’s plan of reorganization, which became effective today, is the capstone of an historic and extremely successful global reorganization,” stated George Davis, lead counsel for Lyondell and Partner in Cadwalader’s Financial Restructuring practice. “When Lyondell retained Cadwalader 15 months ago, the credit markets were frozen and the ability to obtain third-party DIP financing was virtually non-existent. Add to that a significant debt burden, billions of dollars of potential liabilities and an international corporate structure whose foreign subsidiary secured obligors could not be fully protected by filing Chapter 11 in U.S.Bankruptcy Court, and it is easy to see that the scope of the engagement was significant,” he said. “I am proud to be among so many outstanding professionals who met every challenge this complex case presented in a time frame and with results that permit our client to move forward with confidence and certainty.”
Jim Gallogly, Chief Executive Officer of LyondellBasell, stated: “The past 18 months have been extraordinarily challenging for our company. George and his team recognized the complexity of the business environment and traversed very difficult legal terrain. Their outstanding work has led to a consensual resolution deemed fair to all stakeholders. It was an extraordinary accomplishment achieved in a very short period of time. We are grateful for Cadwalader’s hard work as we exit bankruptcy well-positioned for the future.”
Under the plan, LyondellBasell has emerged with only $7.2 billion in consolidated debt ($5.2 billion of net consolidated debt), over $3 billion of liquidity and $10 billion of stockholder equity value (one of the highest in Chapter 11 history).
Among other noteworthy accomplishments in the case were:
Richard Brand, Brian McGovern
Joseph Moreno, Anne Tompkins
Cadwalader is sponsoring this event, where Stuart Goldstein will moderate the panel on CRE CLOs.