Lyondell creditors seek to expand examiner's probe

NEW YORK: Creditors of bankrupt Lyondell Chemical Co asked a US judge on Wednesday to expand an investigation by a court-appointed examiner to

Gang of Five behind LyondellBasell bid RIL's LyondellBasell bid RIL Stock

ensure the petrochemicals company is fairly evaluating proposals from potential suitors.

Lyondell's official committee of unsecured creditors said the examiner should ensure that potential bidders like Reliance Industries have a chance to compete against a reorganization plan offered by a group of the company's senior creditors, which includes current owner Access Industries and private investment

firms Ares Management and Apollo Management LP.

Reliance Industries has offered up to $12 billion to acquire Lyondell, according to sources.
Lyondell's unsecured creditors said in court papers they believe Reliance's offer is superior to the one proposed by Access, Ares and Apollo.

In the court document, the creditors said the senior lenders, Access, Ares and Apollo have "threatened to block" confirmation of any reorganization plan that does not meet their requirements, and were using their "influence to deter proposals from strategic investors."

Spokesmen for Access and Apollo declined to comment and a representative for Ares was not immediately available.

The unsecured creditors also questioned the propriety of $440 million of "adequate protection" payments made to the company's senior lenders since the company filed for bankruptcy in January. They argued the examiner should investigate why Lyondell is paying the money, which cannot be recovered.