A US court decision to approve a controversial $8bn loan for Lyondell Chemical in Chapter 11 could provide a much needed boost to companies’ chances of raising vital bankruptcy financing, but may increase the risk of losses for some existing lenders.
Last week the US bankruptcy court of the Southern district of New York hosted a marathon hearing of various creditors’ objections to the loan, which Lyondell needs to have a chance to reorganise under Chapter 11 protection.
