LyondellBasell Announces Settlement of Intercreditor Dispute

LyondellBasell Industries announced that an agreement has been reached that will help pave the way to LyondellBasell´s emergence from Chapter 11. The proposed agreement, which remains subject to court approval, final internal approval and final documentation, resolves objections by the Unsecured Creditor´s Committee to the company´s settlement of the estate´s claims against the parties who financed the 2007 leveraged buyout of Lyondell by Basell. That settlement was announced in December 2009.

The new agreement increases the amount that will be distributed on the effective date of the Plan to the holders of general unsecured claims, the Millennium Bonds and 2015 Notes from $300 million to $450 million. The additional $150 million is to be paid in the form of reorganized equity which will be funded by reduction in distributions to the holders of Senior Secured Facility and Bridge Loan Claims under the Plan.

The dispute between the unsecured creditors and these defendants has been limiting LyondellBasell´s ability to complete approval of the disclosure statement and Plan of Reorganization. It is anticipated that this can be accomplished soon.

As part of the new agreement, the Unsecured Creditor´s Committee, substantial holders of the senior debt and bridge debt and the 2015 Notes Trustee have agreed to support LyondellBasell´s Plan.

The proposed settlement is not conditioned on the success of any particular proposal to raise new capital for LyondellBasell upon emergence. We will continue to work with all parties to design a confirmable Plan of Reorganization that maximizes value for our creditors while improving the financial stability of the reorganized company.

The Plan and Disclosure Statement will be revised to implement the new agreement and the current agreements among various creditor constituents. Among other things, the Plan reflects the agreement among the senior and bridge debt to convert approximately $18 billion of senior and bridge debt into common equity under the Plan and the allocation of such equity in the reorganized LyondellBasell between the holders of such debt upon confirmation of the Plan.

More Information: www.lyondellbasell.com

LyondellBasell, Rotterdam, Netherlands

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