Energy major Reliance Industries will decide on submitting a bid for LyondellBasell on Tuesday, after the outcome of a U.S. court hearing on a revised rescue plan, local media said.

The Luxembourg-based petrochemicals company has filed an amended reorganisation plan with a U.S. court, proposing a $2.8 billion rights issue, to simplify its corporate structure and exit bankruptcy protection with significantly less debt.

The bankruptcy court in New York will hear the updated rescue plan of the management on Tuesday and take the views of its creditors on the proposal, the Business Standard newspaper said.

"RIL will wait till Tuesday evening to take a final decision," the Economic Times paper said, citing an unidentified person familiar with the matter.

LyondellBasell is expected to seek time till Sept. 6, 2010 to finalise the reorganisation plan, it said.

A Reliance spokesman declined to comment on the report and the revised rescue plan.

In November, Reliance made a cash offer for Lyondell, which said it would consider the offer as a "potential alternative" to maximise shareholder return.

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