LyondellBasell has added its an insolvency proceeding under any
European holding company to European law, LyondellBasell says. No
its U.S. filing for Chapter 11 LyondellBasellmanufacturingoperation
bankruptcy protection. LyondellBasell outside the U.S. has applied for or become
Industries AF (Luxembourg) has been involved in insolvency or bankruptcy pro-
added to the filing to protect it against ceedings in its respective home country,
claims by certain financial and U.S. trade the company adds.
creditors, LyondellBasell says. The hold- “LyondellBasell continues to conduct
ing company does not manufacture or business worldwide while the company
sell products, and has no employees. develops its reorganization plan as
LyondellBasell says it is exercising an part of the Chapter 11 process,” says
option available under U.S. law to prevent LyondellBasell COO Ed Dineen.
creditors from enforcing guarantees by LyondellBasell’s U.S. operations and
LyondellBasell Industries AF for pre- a holding company in Germany filed
petition obligations of LyondellBasell’s for Chapter 11 protection in the U.S. in
U.S. businesses. It also prevents bond- January after ongoing negotiations with
holders of senior notes due in 2015 from lenders failed to result in a credit exten-
potentially pursuing remedies against sion agreement (CW, Jan. 5/12, p. 12).
LyondellBasell Industries AF after an LyondellBasell says it does not know how
interest payment due on the notes last long the Chapter 11 process will take,
February was not paid. The company but that it aims to emerge “as quickly as
obtained a 60-day restraining order from possible.” LyondellBasell has obtained
the U.S. bankruptcy court in February to approximately $8 billion in debtor-
allow time for LyondellBasell to protect in-possession (DIP) financing to fund
its European assets from these claims. continuing operations. The DIP financing
Extending Chapter 11 protection to includes two credit agreements; a $6.5-bil-
LyondellBasell Industries AF is not lion term loan comprising $3.25 billion
DINEEN: Developing a reorganization plan as part of the Chapter 11 process.
in new loans and a $3.25-billion roll-up of existing loans; and a $1.57-billion, asset-backed lending facility. —IAN YOUNG
Celanese says it has agreed to sell its polyvinyl alcohol (PVOH) business to Sekisui Chemical (Osaka) for $173 million, excluding the value of accounts receivables and payables. The deal includes facilities at Calvert City, KY; Pasadena, TX; and Tarragona, Spain. The deal also calls for a long-term supply agreement of vinyl acetate monomer (VAM), Celanese says. The sale is expected to be completed by mid-year.
The PVOH business had 2008 sales of about $300 million, Celanese says. Celanese acquired the business from Air Products in 2000 and expanded it in 2005 with the acquisition of Acetex. The divestment “increases our flexibility and further focuses our integrated acetyl chain,” says David Weidman, Celanese chairman and CEO.
The PVOH business is a better fi t for Sekisui, which is expanding its polyvinyl butyral (PVB) business in North
America to compete against DuPont and Solutia, says Frank Mitch, analyst at BB&T Markets (New York). The transaction provides “further fi nancial fl exibility to Celanese at a time when cash is king,” Mitsch says. PVOH is a raw material in the production of PVB interlayer fi lms, which are used in safety glass.
Sekisui Chemical says it is the world’s largest supplier of interlayer fi lms for the automobile industry, with 42% of global market share. “The acquisition enables us to secure a stable supply of raw material, enhance local production capabilities, develop technological synergies for raw materials and strengthen the supply chain,” Sekisui says.
Meanwhile, Celanese plans to permanently close its acetyls complex at Pardies, France and its VAM plant at Cangrejera, Mexico (CW, April 20/27, p. 11). The company cites high costs at both Pardies and Cangrejera as well as lower VAM demand.—LINDSEY BEWLEY
HEXION RATIONALIZES EPOXY OPS Hexion Specialty Chemicals says it intends
to shift the production of certain epoxy products within its global manufacturing operations due to a fall in demand. No products are being discontinued, Hexion says. Further details were not disclosed. Hexion manufactures epoxy resins and related products at facilities at Norco, LA; Deer Park, TX; Argo, IL; Lakeland, FL; Barbastro, Spain; Duisburg, Stuttgart and Wesseling, Germany; Pernis, Netherlands; Onsan, Korea; and Stanlow, U.K.
ACC UPS FACEBOOK PRESENCE ACC says it has set up a new application, Mylecule, on the social networking site Facebook.com that allows users to establish “common bonds” with friends and learn “about the basics and benefits of American chemistry.” The user forms the “nucleus” in this application, with each friend represented by an “element” with their initials. Mylecule is similar to other Facebook applications, including “friend wheel” or “friend sets,” ACC says. “The virtual three-dimensional molecular bonds allow each user the ability to interact with Mylecule, and to connect directly to the profiles of their friends,” ACC says.
BASF PICKS CANADIAN DISTRIBUTOR BASF says it has chosen Northspec Chemicals (Toronto) as its Canadian distributor for urethane-based adhesives and sealants, coatings, and elastomer products. Products include certain methylene di-para-phenylene isocyanate and polyether polyols.
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