Cost control

To restructure its debts, the US operations of LyondellBasell Industries and one of its European holding companies have voluntarily filed to reorganise under Chapter 11 of the US Bankruptcy Code.

LyondellBasell, one of the world's largest polymers, petrochemicals and fuels companies, also announced that, pending court approval, it has made arrangements for up to $8bn (£5.3bn) in debtor-in-possession (DIP) financing to fund continuing operations.

'During the past two quarters, we have seen a dramatic softening in demand for our products and unprecedented volatility in raw materials costs. December was particularly difficult, as many of our customers postponed orders to reduce their inventories,' said Volker Trautz, chief executive officer.

'During the reorganisation period, our goal is for the company to continue its operations and its relationships with customers and suppliers in the normal course,' said Trautz.

Trautz said that the company began taking steps to control costs as demand began to weaken and raw material costs started to fluctuate.