Lyondell claims

Industrial/Transportation


Public companies mentioned herein: LyondellBasell Industries (LYB).

Highlights

Lyondell was acquired by chemical maker Basell in a deal that closed in 2008. Within 6 months of the closing, however, the company filed for bankruptcy protection. In the subsequent restructuring, unsecured creditors received just 15-20 cents in recoveries plus an interest in a litigation trust established for purposes of pursuing various causes of action. Those litigation trust interests currently trade at about 18 cents in dollar terms, and the presenter believes that approximately 10-15 cents in recoveries is very likely achievable based on a combination of his evaluation of already settled claims as well as a conservative assessment of claims he believes are highly likely to be settled or easily won. Further, he is calling for base case recoveries of 27-30 cents, with the potential for recoveries of par (or higher) in upside tail scenarios.

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