Lyondell: fund bankruptcy loan

Check it out: Bankrupt petrochemicals producer Lyondell Chemical Co ACCELC.UL on Tuesday said in court papers that its lenders can fund its $8 billion bankruptcy loan, even if ABN AMRO walks away from the deal. Lyondell is heading to court on Wednesday to ask for approval of its debtor-in-posession (DIP) financing, which would be the largest in history. Investors put in $3.25 billion of new money, and were allowed to boost the seniority of $3.25 billion of existing senior-secured debt by rolling it up into the DIP loan. An additional $1.54 billion of revolving credit is secure by liens on Lyondell's receivables and inventory. ABN AMRO, which says it holds approximately $3.4 billion in outstanding claims against the company has threatened to walk away from the deal, saying in an objection filed on Monday that the roll-up jeopardizes its existing liens on Lyondell's assets. ABN had committed to fund about $326 million of the company's DIP financing, according to court papers. Lyondell said on Tuesday that its other 13 lenders have agreed to fill the funding commitments if ABN walks away from the deal and asked the judge to overrule objections to its loan. ABN had disagreed with how the other 13 lenders decided to document the roll-up loan, Lyondell said, labeling the objection an "intercreditor dispute." ABN AMRO was nationalized by the Dutch government October 2008. Reuters