Lyondell Files Suit Over $1.3B In Defaulted Notes

Law360, New York (August 31, 2009, 2:05 PM EDT) -- Bankrupt Lyondell Chemical Co. has sued Wilmington Trust Co., the trustee for the holders of about $1.3 billion in senior notes, in an effort to stop it from seeking repayment remedies — saying the move could dash reorganization hopes by triggering insolvency filings for nondebtor European affiliates.

The chemical company filed an adversary suit against the trust, successor to the Bank of New York as trustee for the notes, on Friday in the U.S. Bankruptcy Court for the Southern District of New York.

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