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Maxim portfolio named in lawsuit tied to Lyondell leveraged buyout
By Caroline Salls
Pittsburgh, Feb. 21 - A lawsuit has been filed relating to Maxim Stock Index Portfolio's investments in LyondellBasell Finance Co. in connection with Lyondell's 2009 Chapter 11 bankruptcy proceeding, according to a prospectus supplement for the portfolio.
Maxim said the lawsuit stems from a 2007 leveraged buyout of Lyondell Chemical Co. by Basell AF SCA. The portfolio was named as a defendant and putative member of the proposed defendant class of shareholders on Dec. 19 in the lawsuit filed by LB Creditor Trust trustee Edward S. Weisfelner.
According to the supplement, the plaintiffs seek to recover amounts paid to Lyondell Chemical shareholders in connection with the leveraged buyout, plus interest and attorneys' fees and expenses.
The lawsuits allege no misconduct by the portfolio, but the payment of any judgments or settlements could have an adverse effect on the portfolio's net asset value, the supplement said.
Although the trustee received court approval to file his complaints under seal, he said in court documents filed in December that the trust holds all of the rights to claims, rights and causes of action arising under state law against the former Lyondell Chemical shareholders who received payments for shares of Lyondell upon the conversion of those shares on Dec. 20, 2007 into the right to receive $48 per share in cash.
Under the complaints filed under seal, the trust was looking to assert state law fraudulent conveyance claims against shareholder defendants.
Lyondell Chemical is a U.S. subsidiary of LyondellBasell Industries AF SCA, a Netherlands-based polymer, petrochemicals and fuels company. LyondellBasell's U.S. operations and one of its European holding companies filed for bankruptcy on Jan. 6, 2009.
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