Lessons From The LyondellBassell Rights Offering

Law360, New York (August 5, 2010, 3:10 PM EDT) -- A few years ago, rights offerings were a rarely employed means of financing an emergence from bankruptcy. However, a combination of the credit crunch and the increased entry of funds, more likely to take in equity from a borrower, into the loan market has resulted in the rise of rights offerings as a means for borrowers to raise capital to emerge from bankruptcy.

Recently, many plans of reorganization have included some type of rights offering, replacing the more common issuance of bond debt. Despite criticisms that...
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