hexion

The jury trial that pits family-owned Huntsman Corporation against Credit Suisse and Deutsche Bank over a multi-billion dollar tortious interference claim will begin on 11 May 2009. The trial relates to the banks’ behaviour in Huntsman’s merger with Hexion Speciality Chemicals.
 
Judge Fred Edwards refused to grant the banks a delay of the trial and denied their request to consolidate Huntsman's claims against Apollo Management, owners of Hexion, with Huntsman’s claims against them.
 

The protracted and bitter merger between family-owned Huntsman and their private-equity backed rivals Hexion Speciality Chemicals has suffered a new setback as Credit Suisse and Deutsche Bank have announced they will not provide immediate funding.

The banks do not believe that the combined company will be solvent – a claim first made by Hexion back in June. However, since then, a district judge forbade both banks from filing any lawsuit that seeks to declare that the combined company would be insolvent, or that it would be unable to pay its debts when due.

Family-owned Huntsman Corporation has won its court battle with private equity firm Apollo Management over the proposed merger with Hexion Specialty Chemicals.

The Chancery Court in Delaware ordered Hexion to consummate the merger as quickly as possible. It also decreed an extension to the merger termination date if Hexion does not fully comply with its order.

Apollo and Hexion filed a lawsuit against  the family company in June claiming it would be insolvent should the merger, which was originally signed in September 2007, go through.

There has been a new twist in the protracted sale of family-owned chemical company Huntsman. The family has announced that it will join a group of independent shareholders – understood to be several hedge funds – who have agreed to invest at least $500 million should the merger with prospective buyer Hexion be completed.