(FORTUNE Magazine) – You probably don't remember that back in July Lyondell, that big chemical company based in Houston, bought Arco Chemical for $5.6 billion in cash. Lyondell had to borrow a heap of money to complete the transaction (S&P put the company on CreditWatch), but at the time company officials said, Not to worry--we'll issue new equity to pay down the debt. Shareholders weren't exactly thrilled, needless to say. And Lyondell stock (ticker LYO)--which had peaked at $38 in April after the company said it was looking to increase earnings at a 10% annual clip over the next five years--began to tank. Weakening commodity prices, plus the nasty market for equity offerings, dragged shares down to $20 by the beginning of October. Shorts moved in. The word on the Street is that Lyondell has been trying to hash out an equity deal through various investment banks--without much luck so far. Not surprisingly, the stock is now down to $16.

--Andy Serwer