Bankrupt LyondellBasell is considering a cash offer from Reliance Industries.

LyondellBasell has confirmed it has received a preliminary cash offer from Reliance Industries for a controlling interest in the company.

A statement on LyondellBasell’s website said: “This offer is in addition to the previous non-binding equity financing proposals received by the company and represents a potential alternative to the initial plan of reorganisation previously filed by the company.”

The company said that its management will work with all parties to “design an approach that maximises value for the company’s creditors through the pursuit of a confirmable plan or reorganisation and enhances the financial strength of the reorganised company.”

Headquartered in the Netherlands, Reliance is owned by billionaire Mukesh Ambani and is India’s largest private sector business.

According to news reports, Reliance will offer $10 billion (£6bn) for the stake in LyondellBasell – one of the world’s largest polymers, petrochemicals and fuels companies.  

LyondellBasell has already been forced to announce the closure of its UK low density polyethylene (LDPE) plant at the end of the year, with 50 employees affected by the decision which was blamed on the “current market environment.”

The company filed for bankruptcy in April this year.

After the announcement, shares on India’s BSE index rose by almost 1%.