Lyondell Trustee Targets 1,700 Investors In $5.6B Suit

Law360, New York (December 14, 2011, 8:06 PM EST) -- The litigation trustee for the creditors of bankrupt Lyondell Chemical Co. targeted 1,700 investors in a suit filed Tuesday seeking to claw back $5.6 billion of the $12.5 billion paid to shareholders during Lyondell's 2007 leveraged buyout.

In an amended complaint filed in New York bankruptcy court, trustee Edward S. Weisfelner said the shareholder payments, issued as consideration in a merger with Luxembourg petrochemical company Basell AF SCA, greatly overvalued Lyondell's share price and were financed through debt that the already-overleveraged company "should have believed it...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.