RIL may make bid for LyondellBasell in Feb

RIL may make a firm bid to acquire bankrupt chemicals and fuel maker LyondellBasell in Feb.

Reliance Industries may make a firm bid to acquire bankrupt chemicals and fuel maker LyondellBasell Industries AF in February 2010 after USD 20 billion of debt owned by the troubled firm is restructured.

A New York court is expected to approve a plan of restructuring LyondellBasell by February and it is highly unlikely that RIL would make any firm offer until then because all cash infused now would go to lenders,sources in the know said.

Once the USD 20 billion debt is restructured by way of converting some of it into equity and lenders taking a haircut for the rest,RIL would offer between USD 12 and 12.5 billion.

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The offer would include RIL taking over about USD 5 billion worth of debt,they said.

A RIL spokesperson declined to comment.

Industry sources said once the restructuring plan is approved,more bidders like Chinese firms may emerge.

LyondellBasell had negative equity of around USD 6 billion at the end of 2008. The company filed for chapter 11 bankruptcy protection in January 2009,and the restructuring process is on.

Sources said RIL’s bid for controlling stake would be subject to several conditions,including the approval of the US government.

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