India's Reliance Industries is looking at acquiring some or all of bankrupt petrochemicals maker LyondellBasell, an Indian television network reported, citing sources.

India's CNBC-TV18 reported that its sources said Reliance could make a cash payment of $3.25 billion to Lyondell's vendors for the deal.

Lyondell spokesman David Harpole declined to comment on the report.

But he said the company is in the process of putting together a rights offering to provide the company with additional liquidity after it emerges from Chapter 11 bankruptcy.

Whether that's what someone is speculating on or not, I don't know, Harpole said.

A Reliance spokesman also declined to comment on the report.

Lyondell, which filed for bankruptcy in January during a sudden cash crunch, filed its Chapter 11 reorganization plans with bankruptcy court in New York on Friday.

We have the exclusive right to present a plan to exit bankruptcy, Harpole said.

Under the reorganization plan, the company and its 94 bankrupt affiliates, will simplify its corporate structure and position the company to exit bankruptcy protection with significantly less debt.

LyondellBasell, was created out of a 2007 leveraged buyout led by New York-based investor Len Blavatnik's Access Industries, but it left the company with a heavy debt load.

(Reporting by Michael Erman; Additional reporting by Pratish Narayanan in Mumbai and Vikram Subhedar in Bangalore; Editing by Tim Dobbyn)

India TV