UPDATE 1-Nova Chemicals gets nod for covenant amendment

Tue Jun 30, 2009 2:16pm EDT

* Lenders agree to amended covenants

* Review of merger with IPIC extended to July 6

* Shares up about a percent

June 30 (Reuters) - Nova Chemicals Corp NCX.TONCX.N said its lenders agreed to amend the financial covenants for remainder of 2009.

The company had said in May that it had raised half of the $100 million required to satisfy the conditions of the covenant relief.

The chemical maker also said the review of its merger with Abu Dhabi government-owned International Petroleum Investment Co (IPIC) by the Investment Review Division of Industry Canada was extended to July 6.

Nova Chemicals expects to close the transaction with IPIC shortly after receipt of the regulatory approval.

Nova's shareholders voted in favor of IPIC's $500 million takeover of the raw plastics manufacturer in April. [ID:N14447766].

Shares of the company were trading up by 7 Canadian cents at C$6.89 Tuesday afternoon on the Toronto Stock Exchange. (Reporting by Arundhati Ramanathan in Bangalore; Editing by Anil D'Silva)

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