Lyondell Creditors Seek To Limit Use Of D&O Policies

Law360, New York (August 27, 2009, 12:50 PM EDT) -- Creditors of Lyondell Chemical Co. have asked a bankruptcy judge to impose a “reasonable limit” on how much Lyondell can draw from insurance policies covering litigation against the company's directors and officers, arguing that those policies are the property of the estate and should be protected.

The official committee of unsecured creditors filed an objection Wednesday in the U.S. Bankruptcy Court for the Southern District of New York to Lyondell's motion to use directors and officers policies to pay for suits not covered by the automatic...
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