A New York federal judge on Wednesday found the trustee of bankrupt Lyondell Chemical Co. can’t claw back $300 million in credit line repayments from private equity mogul Leonard Blavatnik but can bump its breach of contract damages from $8 million to $12 million.
A New York district judge on Wednesday overturned a bankruptcy court's decision to bar the claims of unsecured creditors of Lyondell Chemical Co., who claimed Lyondell's CEO engaged in an intentional fraudulent transfer in connection with a leveraged buyout and sought to claw back $6.3 billion in distributions to shareholders through the LBO.
A $12.5 billion clawback suit against Lyondell Chemical Co. shareholders that were bought out by billionaire tycoon Leonard Blavatnik turns on whether the petrochemical firm’s directors knew that the acquisition would harm unsecured Lyondell creditors, attorneys said at oral arguments Wednesday.
Shareholders in bankrupt Lyondell Chemical Co. urged a New York bankruptcy court Friday to toss adversary suits launched by creditors trying to claw back a $12.5 billion payout that the shareholders received when Lyondell was purchased in 2007 by Luxembourg conglomerate Basell AF SCA in a leveraged buyout.
A New York bankruptcy judge on Wednesday threw out a hedge fund's suit claiming UBS Securities LLC, Lyondell Chemical Co.'s agent for exit financing deals, interfered with a contract related to a $1 billion restructuring loan.
The Commonwealth of Puerto Rico and three California municipalities on Monday disputed Lyondell Chemical Co.'s bankruptcy distribution plan for its $450 million settlement covering methyl-tertiary butyl ether groundwater contamination, telling a New York court they might not recover damages under the plan.
Lyondell Chemical Co. agreed on Wednesday to pay BASF Corp. $100 million and allow a general unsecured claim of $80 million against its bankruptcy estate to settle a long-standing suit accusing Lyondell of breaching a contract and overcharging BASF for eight years of chemical sales.
Lyondell Chemical Co. on Wednesday asked a New York bankruptcy court to approve a settlement it negotiated with two classes of Canadian consumers who brought antitrust allegations, as well as a $110 million bankruptcy claim, against the company in 2006.
The trustee for the LB Creditor Trust, tasked with recovering funds from the leveraged buyout of Lyondell Chemical Co., filed a new clawback suit Monday against defendants including Charles Schwab & Co. Inc. and a class of 32,000 investors.
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.