LyondellBasell, this one could hurt!!!

[Marilyn]

We were greated by this news this morning. http://biz.yahoo.com/ap/081231/lyondellbasell.html

We were expecting the plants to have units down, layoff some folks, but possible bankruptcy of the WORLD'S 3RD LARGEST CHEMICAL COMPANY. This we were not expecting. Three of the plants in my territory are LyondellBasell plants. We have a lot of outstanding invoices and orders ready to ship.

This one could hurt. I don't ask for prayers often on here, but this time, they are needed not only for us, but for the thousands of others who may be affected. This one is HUGE!!

My little branch could suffer. I still think I will survive, simply because of my reputation with the company. If the branch were to close, hopefully I could still maintain my job, just reporting to another branch. However, now I am getting concerned, moreso than ever.

I spent most of the morning on this, reviewing numbers & talking with our CEO. Next week I will probably have to go to Houston to participate in a strategy meeting. We have to protect ourselves while maintaining the relationship we have with this wonderful customer. Many of the guys working at their plants I personally consider to be friends, not just customers. So very, sad for our country!!

[judy]

I will be praying for you all Marilyn.

Hopefully, we will get out of this slump sooner than later. It is very scary.

[Janet]

I'm beginning to think this is just the tip of the iceberg ladies. It will probably get a lot worse before it gets better...if it does at all. The news just isn't good.....for anyone.

[AngieDoogles]

I'm so sorry to hear this Marilyn. :( I will keep you and all those affected in my thoughts and prayers. Sometimes it's so hard to stay positive, but this recession has to end some time...

[Forgivenmom5]

I am so sorry Marilyn! Things are a little slow where I work too. The plant has been off more days through the holidays than normal. For several months they have been closed on Fridays sometimes and closed at lunch some days. Another plant in our area closed Wednesday without giving any notice. They employed 180 people and one lady said her supervisor called her about 3 hours after she got off work tuesday and told her they were closed immediately. Traci and her husband moved up next to DC because of the job situation here. Hopefully things will begin to improve. One of my bosses thinks things will start to improve by summer.

I hope this does not hurt you too much!

[gja1000]

It is very scary right now - for everyone. I think we are all affected, one way or another. Like Marilyn said though, it can cause you to rethink priorities and what really matters. I know lots of people are having a really rough time right now, and I hope things turn around economically very quickly.

[Janet]

I am so sorry Marilyn! Things are a little slow where I work too. The plant has been off more days through the holidays than normal. For several months they have been closed on Fridays sometimes and closed at lunch some days. Another plant in our area closed Wednesday without giving any notice. They employed 180 people and one lady said her supervisor called her about 3 hours after she got off work tuesday and told her they were closed immediately. Traci and her husband moved up next to DC because of the job situation here. Hopefully things will begin to improve. One of my bosses thinks things will start to improve by summer.

I hope this does not hurt you too much!

Debbie, please tell Traci we miss her here okay. I hope the move was a positive one for her and her family.

[DianaB]

I'm so sorry that you have all of this to worry about, Marilyn. I'll keep you and your situation in my prayers.

[Gina]

Marilyn you are in my prayers, I hope this will not effect you. I pray for the country to like Janet mentioned I do to think this will get worse before it gets better..

[Janet]

As long as we have each other to lean on...and Marilyn...lean on us...I honestly feel I could make it through most anything.

[Marilyn]

The news this afternoon was no better, in fact it could be even worse because the forecast now is that the fall of LyondellBasell is probably inevitable. We determined today how to continue to work with them and not expose us any more than necessary should they default. We just hope that their requirements in the next 30 days will not be too great. According to the news today, they have until Sunday to make their payments. If they default, I'm not sure what will happen next.

http://money.cnn.com/news/newsfeeds/articles/djf500/200901021344DOWJONESDJONLINE000503_FORTUNE5.htm

"In a regulatory filing Wednesday, LyondellBasell said lenders had agreed to postpone $160 million in fee payments to Jan. 4 from Dec. 29. The deadline for the payment had been extended previously from Dec. 19. It also postponed $120 million of interest due on some debt.
LyondellBasell's biggest lenders include Citigroup (C), Merrill Lynch & Co. ( MER) and Goldman Sachs Group Inc. (GS). Spokespeople for all three declined to comment."

These are things you don't want to read about one of your key customers. They are a very good company, very good people and the purchase that got them in trouble seemed to be a good thing at the time. They got caught just like some of us did with our 401K's. They needed a crystal ball even more than we did!!

[DianaB]

That's too bad. We should all be worried about what's going on.

[Janet]

I don't want it to hurt anyone, but I sure don't want my family and friends hurt by all this.

[Marilyn]

I spoke with one of the guys that I work with, Shane, this afternoon. He was out looking for a home to rent today. We were his landlords, until this past summer when we sold the home he is living in to a gentleman in the oil business. The new owner planned to continue to rent the home to Shane and his family. However, he notified Shane yesterday, that due to the price of oil dropping so suddenly, he is having financial troubles and must move out of his home in town and move into the rent house. When Shane paid his rent yesterday, he was given a 30 day eviction notice. I feel so bad. If we hadn't sold the property, this wouldn't be happening. Although, selling when we did was a really good thing for us.

It looks like none of us will be spared some hardship as a result of these times.

[Marilyn]

Well, it happened......
http://biz.yahoo.com/ap/090106/lyondellbasell_bankruptcy.html

I've been working feverishly trying to minimize our loss potential ever since first starting this thread. My e-mails and phones fell silent about 3 p.m. when the news hit.

I really do not know at this time what this means. It was like a crash had occurred, but there was no noise. Those of us in the frey of things were just stunned. We were racing against the clock and the time ran out.

[Tiramisu]

Three of my neighbors, two girlfriends, and a lady who bought one of my pups work at Lyondell. I hate that this is happening. Were they being too greedy?

[Marilyn]

Three of my neighbors, two girlfriends, and a lady who bought one of my pups work at Lyondell. I hate that this is happening. Were they being too greedy?

Yes/No. They based their business decisions on how things were looking in 2007 and into the future. 2008 was a record breaking year until September. Basell went into heavy debt buying Lyondell in 2007. Their projections for being able to cover the debt were based on past and projected performance. The world changed in Sept. '08 and when consumers stopped buying things and cars, the demand for chemicals and plastics plummeted and so did the industries' profits. The bills came due and the income just wasn't there. The creditors needed to work with Lyondell in restructuring their loans or they had to file bankruptcy. The latter happened.

LyondellBasell is not the only company in this industry in trouble. Ineos is having trouble covering their debt. Dow lost the Kuwait deal and committed to buy Rohm & Hass this summer when stock was high. Now they are trying to renegotiate the purchase and may sue Kuwait to recover billions lost on that deal. Dow is the largest chemical company in the world. LyondellBasell was number 3. When giants like these have problems, there will be ripples into other industries as well.

Also, it seems to begin a domino effect once one falls, others follow.

The news is so fresh, we don't know what to expect, yet. There will be some reductions in force. We just have to wait and see how the restructuring works, and whether or not we get paid.

I don't know what tomorrow will hold, whether we will be shipping to them or not. I'm figuring, not, but will have to wait and see. I've been in this industry since 1979, and have never seen a time anything like this. I was hopeful until today. Now, I really don't know. I've never seen so many units just not running. The entire Invista, Lyondell, DuPont plant site in our area is down, no steam or anything. Most of the company employees/non-contract people are still there, but for how long?

Houston could be the next Detroit at this rate. Very, very sad!!

[2tiredmom]

I know it's really scary. When it affects a big company like that it is a trickle down
effect. My husband works in Ag-Fertilzer business and they are taking a hit too.
So that will affect the farmers and then turn around and hit us again at the grocery stores. I along with others I'm sure are praying it will stop soon. We've had it good for to long. It's amazing what greed can do to people.
Your in my thoughts and prayers. I'm sure if God had an e-mail address his inbox would be overflowing a gazillion times over.

[Marilyn]

I'm really in a frump over this. It's so hard to shake off. Last night we went to our Wednesday night service at church, and it was so nice. We're having a Ladie's Day on Jan. 24th and I'm the coordinator and master of ceremonies, so we were busy working on that after services. We had a really nice Bible study and devotional. I felt so much better getting my mind on more important things. Afterward we went to IHOP with the preacher and his wife, his wife is like my best friend, any way, when we were paying to leave, she asked me about Lyondell and how things were going. She meant very well, but she brought me back down to thinking of my concerns over this issue. This morning, for some reason, I just have a feeling of dispair. I know I'm not supposed to. My life priorities are higher than work and money. It's just a forboding kind of feeling. Usually I'm much more positive. Gotta get out of this mood, and soon!!!!

Also, there's a funeral I should probably attend today, but I'm just not sure I'm up to it right now. Gotta rise above all this and get on with life!!!

[gja1000]

Marilyn, I do think it is a sense of foreboding that you are feeling. Not necessarily for yourself, but for many many others, our country, etc. I know you feel you should "rise above" it, but I think it is your profound concern for others, humankind if you will, that has you in such a funk. I heard someone on some media say something like, "in times like these, we remember to appreciate the little things, rather than the material things". It reminded me of something you said recently about trying to appreciate things like faith, family, fun, etc, rather than worrying about the declining 401K (I know that probably not exactly what you said, but something like it)

I don't think you are wrong to feel the way you are feeling, I just think your kindness and compassion is overwhelming you.

[Marilyn]

Oh, Gayle, you are so sweet. Your kind words brought tears to my eyes. It is a sad time, and I do hate being down like this. We had a woman who had been laid off call our office looking for a job. My husband had a man call him the same way. These people will do anything just to have a job again. It is upsetting.

I think your word foreboding does describe how I feel. I'm afraid that any day the whole thing will come tumbling down. One of our daughters ask what would happen if the country went bankrupt, and I really didn't know what to tell her. I heard today that California could start giving some of their state employees IOU's for pay checks within the next 3 weeks. Macy's, my favorite department store, is closing 11 stores.

Then I wonder, is the media causing this? Are they freaking us all out and causing us to be afraid to spend money which is causing the economic problems.

It's all beyond me and I'm afraid it's too complicated for anyone to truly understand and know what needs to be done. What they've done so far isn't working.

My husband is worrying that I'm internalizing this and will give myself a heart attack or something. I am getting a fever blister again, which I can always attribute to a stressful event.

Sorry, this shouldn't be about me. It's much bigger than that.

[AngieDoogles]

I agree completely with Gayle. I think you are taking it hard because you have such a huge heart. Hang in there. Hopefully things will start to get better soon.

[DianaB]

Marilyn, I know that you're worried about what's going on and I know that you know this passage from the Bible, but I'm going to share it with you anyway. Pay special attention to verse 34. This is from the Message--

Matthew 6:19-34

A Life of God-Worship
19-21"Don't hoard treasure down here where it gets eaten by moths and corroded by rust or—worse!—stolen by burglars. Stockpile treasure in heaven, where it's safe from moth and rust and burglars. It's obvious, isn't it? The place where your treasure is, is the place you will most want to be, and end up being.
22-23"Your eyes are windows into your body. If you open your eyes wide in wonder and belief, your body fills up with light. If you live squinty-eyed in greed and distrust, your body is a dank cellar. If you pull the blinds on your windows, what a dark life you will have!

24"You can't worship two gods at once. Loving one god, you'll end up hating the other. Adoration of one feeds contempt for the other. You can't worship God and Money both.

25-26"If you decide for God, living a life of God-worship, it follows that you don't fuss about what's on the table at mealtimes or whether the clothes in your closet are in fashion. There is far more to your life than the food you put in your stomach, more to your outer appearance than the clothes you hang on your body. Look at the birds, free and unfettered, not tied down to a job description, careless in the care of God. And you count far more to him than birds.

27-29"Has anyone by fussing in front of the mirror ever gotten taller by so much as an inch? All this time and money wasted on fashion—do you think it makes that much difference? Instead of looking at the fashions, walk out into the fields and look at the wildflowers. They never primp or shop, but have you ever seen color and design quite like it? The ten best-dressed men and women in the country look shabby alongside them.

30-33"If God gives such attention to the appearance of wildflowers—most of which are never even seen—don't you think he'll attend to you, take pride in you, do his best for you? What I'm trying to do here is to get you to relax, to not be so preoccupied with getting, so you can respond to God's giving. People who don't know God and the way he works fuss over these things, but you know both God and how he works. Steep your life in God-reality, God-initiative, God-provisions. Don't worry about missing out. You'll find all your everyday human concerns will be met.

34"Give your entire attention to what God is doing right now, and don't get worked up about what may or may not happen tomorrow. God will help you deal with whatever hard things come up when the time comes.

[Marilyn]

Thank you, Diana, yes, I know this scripture very well, and I'm trying to maintain the proper perspective, and pray a lot and try to give it to God since He is the one in control.

When you are right in the throws of something it does become difficult, and I was using this forum to release some of my concerns, I guess. We seem to at least have some information now and have an idea what our liabilities will be. It will probably be pretty bad for our branch as I feared. We will know for sure on Monday. Not enough to affect anyone's job, but definitely our pay this month, when the big right-off will occur if it goes as we think it may.

Thank you all for listening, and for your support. You are such a wonderful group of ladies and friends!!!!!

I'm feeling much better now that we have some information and a direction on how to conduct our business with them in the future. My direct boss is pleased with what we've done. And I think our other management are too, now that all the freaking out is over.

With great rewards, come great risk sometimes.

[judy]

I'm so glad you are feeling better about this situation. One day at a time.

Hugs,

Judy

[DianaB]

Marilyn, I know that this is a couple of days late but how did Monday go at work?

[HALEY]

love you post Diana.

but my belief is this recession is going to get worse before it gets better!

[Marilyn]

Well, the LyondellBasell thing is not looking good. We don't have the final ruling yet, now they are saying maybe by next Tuesday. It is looking like we may get stiffed for over a $1M. At my branch, it's $700K of that amount. I did find out that the commission plan works both ways. We share in the profits and the losses. I haven't calculated the damage yet, because I just didn't want to know, but if they write off the $700K, our profits in a month are not this much, so my commission will be a negative number. I will still get my base pay, but no commission until I make enough commission from profit to offset the negative. Once the negative is paid back, I'll start receiving positive commission pay again.

So this thing is personal, and it looks like those of us who do earn commission will lose pay. We are blessed and do not live paycheck to paycheck, so we will be okay. There are at least 2 people who are not in the same situation as we are who will be affected.

We just have to increase sales elsewhere as much as possible to offset this loss which is difficult right now. I'm working on some things to try to improve the situation and reduce the damages. One reason I haven't been on here as much this week.

Thank you all for caring so much, my dear friends. Our family is very blessed though. We will weather this okay. It's just money, the important things are doing great!!!!