Basell Noteholders Sue BNY Mellon Over Lyondell Deal

Law360, New York (September 15, 2010, 8:05 PM EDT) -- Holders of some $500 million in Basell AF SCA’s notes have filed a breach of contract suit against Bank of New York Mellon Corp., claiming it never should have let Basell’s leveraged buyout of Lyondell Chemical Co. proceed.

BNY Mellon, an indentured trustee for the noteholders, failed to take proper steps to protect the noteholders, instead signing an intercreditor agreement validating Basell’s buyout of Texas-based Lyondell and purporting to subordinate the massive debt incurred by the deal, according to a complaint lodged Tuesday in the New...
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