(Adds context related to the delayed filing, deal with LyondellBasell Industries)
May 13 (Reuters) - Brazil's Braskem SA, Latin America's largest petrochemical producer, said on Monday the New York Stock Exchange will start a delisting process for its U.S.-listed shares, after it failed to file its 2017 annual report on time.
Trading of its Braskem's American depositary shares (ADS) has been suspended and holders can ask the Bank of New York Mellon to exchange each of their shares for two underlying preferred Class A shares, which are traded on the Brazilian Stock Exchange, the company said bit.ly/30jnQLI in a delayed filing with the U.S. Securities and Exchange Commission.
The delayed SEC filing was one of the main hurdles to the completion of an $11 billion takeover of Braskem by LyondellBasell Industries NV, Reuters reported previously.
Braskem Chief Financial Officer Pedro Freitas said earlier this month that the delays in the filing are related to an analysis of the effectiveness of his company's internal controls.
Braskem was caught up in a massive corruption scandal centering on its controlling shareholder, Odebrecht SA, and signed a global leniency accord with U.S., Swiss and Brazilian authorities in December 2016. (Reporting by Debroop Roy in Bengaluru Additional reporting by Tatiana Bautzer in Sao Paulo)