UPDATE 2-LyondellBasell says all reorganisation options open
(Adds more details, background)
AMSTERDAM, Jan 8 (Reuters) - LyondellBasell [ACCEIN.UL] said on Thursday all options were open for the reorganisation of its global operations, including divestments, after the company filed in the U.S. for Chapter 11 bankruptcy protection.
"Everything is open at this point," spokesman David Harpole said. "We're looking at a variety of actions to position ourselves to successfully go forward."
Struggling under massive debt and slumping demand for its products, the world's third-largest petrochemical company filed for bankruptcy protection in a New York court on Tuesday.
The company said that while it sought to restructure its debt in the U.S., its global operations would continue operating as normal.
In its court filing, the company said it had resolved to appoint Kevin McShea as Chief Restructuring Officer from turnaround firm Alix Partners, while London-based law firm Clifford Chance will provide restructuring and other advice in regards the European operations.
Spokesman Harpole said on Thursday the company would also present a reorganisation plan for its worldwide operations on a date determined by the court. He added that the company has several months to draw up the plan.
The bankruptcy filing included almost 80 units of the company and encompassed its U.S. operations and a German financing arm, which LyondellBasell said was used as a bridge for financing between the U.S. and Europe.
Chemicals companies have been hard hit by the rapidly weakening economy as demand from the auto, housing and electronic industries has fallen away rapidly in recent months.
Harpole said the company had previously indicated in November it will seek to cut its workforce by 15 percent as part of a global cost-cutting programme to reduce the complexity of the business that would take out sections of management.
It is not yet known where those job cuts will take place.
The privately-owned company with headquarters in The Netherlands took on billions of dollars in debt obligations a year ago when billionaire Len Blavatnik led a $12.7 billion leveraged buyout of U.S. firm Lyondell by Basell of the Netherlands.
The bankruptcy case is: In re Lyondell Chemical Co., U.S. Bankruptcy Court, Southern District of New York (Manhattan), No. 09-10023. (Editing by Sharon Lindores)
