Citigroup is to suffer a $1.4bn loss on its loans to LyondellBasell, the chemical group that placed dozens of its subsidiaries under bankruptcy protection this week after failing to restructure $26bn in debt. Citi’s loss, to be recorded in Q4 results mainly as a loan loss reserve, will put further pressure on its Q4 earnings, to be announced Jan 22. Citi on Thursday said its gross exposure to LyondellBasell, which is controlled by billionaire Len Blavatnik through his Access Industries, was $2bn. However, Citi has already taken about $600m in writedowns and reserves over the past few months.

This entry was posted by Gwen Robinson on Friday, January 9th, 2009 at 5:50 and is filed under Capital markets. Tagged with citi, LyondellBasell. Edit this entry.