LyondellBasell's U.S. Operations and One of Its European Holding Companies File Chapter 11 to Restructure Balance Sheet



    
    Company Has Commitment for Significant DIP Financing Including $3.25
    Billion of New Funding

    Company Intends Global Business Operations to Continue Normally

    Filing Does Not Include LyondellBasell's Non-U.S. Operating Companies

    
    ROTTERDAM, Netherlands, Jan. 6 /CNW/ -- LyondellBasell Industries
announced today that, in order to facilitate a restructuring of its debts, its
U.S. operations and one of its European holding companies have voluntarily
filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code. The company
also announced that, pending Court approval, it has made arrangements for up
to $8 billion in debtor-in-possession (DIP) financing to fund continuing
operations. Of this total, $3.25 billion consists of new funding; $3.25
billion represents a refinancing of certain obligations under LyondellBasell's
existing senior secured credit facilities; and $1.515 billion represents
replacement of existing working capital facilities.
    "We have been working collaboratively with our creditors and our equity
holder on a financial restructuring that reflects the realities of today's
market environment and positions us for the future," said Volker Trautz, Chief
Executive Officer.
    "During the past two quarters, we have seen a dramatic softening in
demand for our products and unprecedented volatility in raw materials costs.
December was particularly difficult, as many of our customers postponed orders
to reduce their inventories. Though we currently anticipate this situation to
be short-term and expect customers to increase their purchasing in 2009, we
made the decision to file Chapter 11 in order to provide the company with the
time and resources necessary to facilitate an orderly restructuring and
position the business for the long term.
    "During the reorganization period, our goal is for the company to
continue its operations and its relationships with customers and suppliers in
the normal course," said Trautz.
    The Chapter 11 filing applies to LyondellBasell's operations in the
United States and one of its European holding companies, Basell Germany
Holdings GmbH.
    Trautz said that the company began taking steps to control costs as
demand began to weaken and raw material costs started to fluctuate.
    "Over the past several months, we announced plans to significantly reduce
headcount and also reduced capital expenditures and working capital," he said.
"We have also idled certain facilities and reduced production and processing
at others. We are aggressively exploring additional ways to lower our costs
and streamline operations in response to a very difficult global economic
environment.
    "Our core businesses -- fuels, chemicals, plastics and technology -- are
fundamental to the global economy," Trautz said. LyondellBasell's products are
used in a broad range of applications and in numerous products including:
transportation, fuels (gasoline and diesel), rigid and flexible packaging,
plastic pipe, detergents, cosmetics, electronics, appliances, automotive
parts, paints and coatings, furnishings, construction and building materials
and many other industrial and consumer goods applications.
    LyondellBasell's non-U.S. operating entities will continue to function
independent of the Chapter 11 process. The U.S. companies filed for Chapter 11
protection in the Southern District of New York in Manhattan. A complete list
of the filing entities and other information related to the Chapter 11 cases
can be found through a link at the company's website,
http://www.lyondellbasell.com. The company has also established a
Restructuring Information Line, which is 866-964-5615, or in Houston,
713-309-4512.  Outside the United States, callers can dial +1 713-309-4512
(English only).
    
    About LyondellBasell
    
    LyondellBasell Industries is one of the world's largest polymers,
petrochemicals and fuels companies. The company is the global leader in
polyolefins technology, production and marketing; a pioneer in propylene oxide
and derivatives; and a significant producer of fuels and refined products,
including biofuels. Through research and development, LyondellBasell develops
innovative materials and technologies that deliver exceptional customer value
and products that improve quality of life for people around the world.
Headquartered in The Netherlands, LyondellBasell
(http://www.lyondellbasell.com/) is privately owned by Access Industries,
which was founded in 1986 by U.S. industrialist Leonard Blavatnik.
LyondellBasell employs approximately 7,800 people in nearly 30 locations
throughout the United States. Altogether, the company employs approximately
16,000 worldwide at more than 60 locations.
    
    Forward-Looking Statement
    
    This press release contains forward-looking statements. Forward-looking
statements are subject to known and unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements to be
materially different from the future results, performance or achievements
expressed or implied by the forward-looking statements. Assumptions and other
important factors that could cause our actual results to differ materially
from those anticipated in our forward-looking statements include, among other
things: (i) the ability of LyondellBasell to develop, prosecute, confirm and
consummate one or more Chapter 11 plans of reorganization; (ii) the potential
adverse impact of the Chapter 11 filing on LyondellBasell's operations,
management and employees, and the risks associated with operating businesses
under Chapter 11 protection; (iii) the ability of LyondellBasell to comply
with the terms of the DIP financing facility; (iv) the availability, cost and
price volatility of raw materials and utilities; (v) uncertainties associated
with the United States and worldwide economies, including those due to
political tensions in the Middle East and elsewhere; (vi) the supply and
demand balances for LyondellBasell's and its joint ventures' products, and the
related effects of industry production capacities and operating rates; (vii)
legal, tax and environmental proceedings; (viii) the cyclical nature of the
chemical and refining industries; (ix) operating interruptions, including
leaks, explosions, fires, weather-related incidents, mechanical failure,
unscheduled downtime, supplier disruptions, labor shortages or other labor
difficulties, transportation interruptions, spills and releases and other
environmental risks; (*) current and potential governmental regulatory actions
in the United States and in other countries; (xi) terrorist acts and
international political unrest; (xii) competitive products and pricing
pressures; (xiii) risks of doing business outside the United States, including
foreign currency fluctuations; (xiv) LyondellBasell's ability to service its
substantial indebtedness (xv) available cash and access to capital markets;
(xvi) customer response to the Chapter 11 filing; and (xvii) the risk factors
or uncertainties listed from time to time in Lyondell Chemical Company's
filings with the Securities and Exchange Commission and with the U.S.
Bankruptcy Court in connection with the company's Chapter 11 filing. Other
factors and assumptions not identified above are also relevant to the
forward-looking statements, and if they prove incorrect, could also cause
actual results to differ materially from those projected.
    Forward-looking statements speak only as of the date of this release. We
disclaim any obligation or undertaking to provide any updates or revisions to
any forward-looking statement to reflect any change in our expectations or any
change in events, conditions or circumstances on which the forward-looking
statement is based.




For further information:

For further information: Susan Moore of LyondellBasell Industries,
+1-713-309-4645 Web Site: http://www.lyondellbasell.com

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LYONDELLBASELL INDUSTRIES

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