Penn links with Lyondell; US firm plans to exit Chapter 11 via toll manufacturing deal.

CONSHOHOCKEN, PENNSYLVANIA -- Penn Specialty Chemicals Inc. has filed a reorganisation plan to emerge from Chapter 11 bankruptcy protection status, which it entered in July 2001.

Under the plan, Penn will toll manufacture tetrahydrofuran (THF) and polytetramethylene glycol (PTMEG) for Lyondell Chemical Co., which will supply butane dell feedstock for these processes.

"We have negotiated a tolling arrangement with Lyondell subject to our exit from Chapter 11. As a leading BDO supplier Lyondell's position strengthens that whole product line to compete in the m