On Wednesday July 27, U.S. District Judge Denise Cote revived a lawsuit alleging that Lyondell Chemical Company “intentionally cheated creditors out of $6.3 billion when it underwent a 2007 leveraged buyout, only to go bankrupt barely a year later.” Judge Cote stated that a federal bankruptcy judge was mistaken in dismissing a bid by Trustee Edward Weisfelner to recover money from shareholders who had pocketed about $12.5 billion. Weisfelner said in an interview that he felt encouraged by Judge Cote’s decision and stated that “There is a very good chance there will be recompense for creditors who were injured and have been waiting years.”
The lawsuit is Weisfelner v Hofmann et al, U.S. District Court, Southern District of New York, Case No. 16-00518.
The bankruptcy matter is in re: Lyondell Chemical Co, U.S. Bankruptcy Court, Southern District of New York, No. 09-10023.
You can read the Reuter’s article here.