Cashing in on leveraged buyouts got a little riskier this week when a bankruptcy judge weighed in on the side of the former Lyondell Chemical Co.'s creditors in a lawsuit against former shareholders, Dow Jones Daily Bankruptcy Review reported today. Judge Robert Gerber said shareholders of the company, which tanked under the weight of debt piled on in a 2007 leveraged buyout, can't take refuge in a Bankruptcy Code safe-harbor provision to escape a state-law fraud lawsuit brought on behalf of creditors left unpaid in Lyondell's chapter 11 bankruptcy.
