Lyondell Basell is the world's third largest petrochemical group. In January Lyondell put its U.S. units into Chapter 11 bankruptcy and missed its regular coupon payment of $680 million of 2015 European bonds. It was given a 30-day grace period that ran out this week. Then all hell broke loose.

Holders of the debt, including investment banks, had to vote to decide if Lyondell was in default. They voted "yes" on Friday. Now those who sold the credit default protection must come up with payment to cover losses on Lyondell bonds.

Continue reading What happens when Lyondell Bassell defaults with CDS protection?

What happens when Lyondell Bassell defaults with CDS protection? originally appeared on BloggingStocks on Tue, 24 Mar 2009 14:00:00 EST. Please see our terms for use of feeds.