BNY Mellon Win In Lyondell LBO Case Upheld By NY Court

Law360, New York (May 21, 2013, 7:27 PM EDT) -- A New York state appeals court on Tuesday said Bank of New York Mellon Corp. did not breach a fiduciary duty in its handling of Basell AF SCA's leveraged buyout of Lyondell Chemical Co. that bankrupted both companies, affirming a lower court's decision.

BNY Mellon, the trustee to Basell noteholders, allowed the chemical company to fund the buyout with $20 billion in new debt that superseded about $2 billion in debt the company already owed to hedge funds. After the buyout went bad and both companies...
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