LyondellBasell’s U.S. Operations in Chapter 11

Dutch-based LyondellBasell announced early last month that it had voluntarily filed to reorganize its U.S. operations (headquartered in Wilmington, Del.) under Chapter 11 of the U.S. Bankruptcy Code. The company also announced that, pending court approval, it had made arrangements for up to $8 billion in financing to fund continuing operations. CEO Volker Trautz cited the dramatic softening in demand for the company’s products and unprecedented volatility in raw-material costs during the last two quarters of 2008. “We plan to significantly reduce headcount and reduce capital expenditures and working capital. We have idled certain facilities and reduced production and processing at others. We are aggressively exploring additional ways to lower costs and streamline operations in response to a very difficult global economic environment. Our goal during the reorganization period is to continue operations and normal relationships with customers and suppliers.”