NEWS OF THE WEEK
BANKRUPTCY: LyondellBasell and Tronox work with creditors while possible buyers look on
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HE REORGANIZATION PLANS of LyondellBa-
sell Industries and Tronox, both in bankruptcy court, are moving forward even as outside firms look to cash in on their troubles. In January, petrochemical maker Lyondell filed for bankruptcy protection in the face of crushing debt of approximately $26 billion. In November, Lyondell received a preliminary cash offer from India’s Reliance Industries to take a controlling interest in the firm after it emerges from bankruptcy (C&EN, Nov. 30, page 10). Despite the outside offer, Lyondell is proceeding with its own reorganization. A plan filed on Dec. 11 outlines a streamlined corporate structure and a stockrights offering that would raise $2.8 billion in new capital. The funds would be used to operate the company after bankruptcy and to pay down debt. The filing also provided details on how money would be distributed to various classes of creditors. Lyondell spokesman David Harpole says the key next steps are to have the reorganization plan confirmed by the bankruptcy court in February, after which it would be presented to creditors for voting. Before that happens, the court will address a proposed settlement with the unsecured creditors that sued the banks and advisory firms involved in Lyondell Chemical’s 2007 buyout of Basell. Harpole won’t comment on a possible binding offer from Reliance, which could emerge at any time. But he does say Lyondell has a hearing scheduled for January to extend to Sept. 6 the company’s exclusive right to
present reorganization plans to the bankruptcy court, thus keeping control over possible outside offers. Meanwhile, titanium dioxide maker Tronox is being hassled by bidder Huntsman Corp. for postponing an asset auction that was supposed to occur on Dec. 8. In August, Huntsman agreed to purchase most of Tronox’ production assets for $415 million, provided a higher bidder doesn’t emerge at the auction. But Huntsman complained in a bankruptcy court filing that “at a Dec. 3, 2009, status conference, the debtors, without any notice to Huntsman, adjourned the auction and sale hearing to Dec. 21 and 22, 2009, respectively, and indicated that they may not hold an auction at all.” In a statement, Tronox says that it plans to proceed with the Dec. 21 auction but that it is also working on a reorganization plan with its unsecured creditors and the U.S. attorney. The plan would include debt financing and an equity commitment of $105 million for environmental remediation trusts and a litigation trust. Environmental liabilities dating from Tronox’ 2006 spin-off from Kerr-McGee were a major reason for the bankruptcy filing. Huntsman’s offer for some of Tronox’ assets would not cover a significant portion of the claims of the unsecured creditors, says Gregg Goodnight of the Pearland, Texas-based consulting firm ChemAnalysis. “Unsecured creditors can try to block whatever plan is proposed in bankruptcy court. They will fight the plan if they don’t think they will get their claims settled at a high enough percentage.”—MELODY VOITH T RO N OX
REORGANIZATION COMPLICATIONS
Huntsman hopes to buy Tronox’ assets, including this TiO2 plant in the Netherlands.
BIOMONITORING Report provides snapshot of human exposure to chemicals Americans are being widely exposed to polybrominated diphenyl ether (PBDE) flame retardants, perfluorinated chemicals such as those found in nonstick coatings on cookware, the plastics chemical bisphenol A (BPA), and many other chemicals in everyday consumer products, according to the “Fourth National Report on Human Exposure to Environmental Chemicals.” The report, released by CDC on Dec. 10, details exposure, as measured in blood and urine, to 212 chemicals, including 75 that have not previously been measured in a represen-
tative sample of the U.S. population. The 75 chemicals new to the list include acrylamide (found in fried, starchy food), arsenic species and metabolites, endocrine disrupters such as BPA and the antimicrobial triclosan, perchlorate (found in rocket fuel), perfluorinated chemicals, PBDE flame retardants, and volatile organic compounds such as the gasoline additive methyl tert-butyl ether. The findings prompted Sen. Frank R. Lautenberg (D-N.J.) to issue a statement highlighting the need to reform U.S. chemical law. “This study affirms that
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Americans are exposed to a wide range of industrial chemicals—including some that are known to cause cancer—and provides further evidence that America’s broken chemical regulations must be fixed,” Lautenberg stated. The American Chemistry Council, a chemical industry trade group, emphasized that the presence of a chemical in a person’s blood or urine is not an indicator of health effects. The group stressed that more research is needed to determine whether exposure at low levels is a health concern.—BRITT ERICKSON
