LyondellBasell on Wednesday said it has won the US bankruptcy court's approval for reaching a settlement with its creditors, paving the way for the chemical giant to emerge from bankruptcy.

Last month, Lyondell had reached a settlement with the creditors to pay $450 million, higher from $300 million earlier planned, following which the lenders were to support the company's reorganisation plan.

Lyondell said in a statement that it would go ahead with the $2.8 billion rights offering, which would bring in funds into the company and help it emerge from bankruptcy protection.

The court also approved the company to commence the "rights offering to holders of its secured debt who will be receiving rights under the plan," Lyondell said.

Weighed down by massive debts, LyondellBasell's US operations and one of its European holding companies had filed for Chapter 11 bankruptcy protection in 2009.

Earlier this week, Lyondell rejected a $14.5 billion takeover bid from India's Reliance Industries. Lyondell said the restructuring plan was a better option than the takeover bid by the Indian firm.

In a separate statement the company said it would raise $3.2 billion through issue of securities and borrowings to repay its existing debt.