According to the New York Post, a new creditor group led by US private equity firm Apollo Management is 'expected to reject' the RIL bid.
"Reliance is making a mistake by not offering more," the Post quoted one Lyondell creditor as saying.
"The move would set the way for Apollo to merge LyondellBasell with its Hexion Specialty Chemicals operation," the Post said.
"A hearing on a reorganisation plan at the US bankruptcy court would transfer ownership of the company to the creditors," the Post added.
LyondellBasell's US operations and one of its European holding companies had filed for Chapter 11 bankruptcy protection in 2009.
In Nov 2009, LyondellBasell and Mukesh Ambani- led RIL disclosed a 'preliminary non-binding offer' by the Indian firm for taking a majority stake in the chemical major.