Court of Appeals finds in favor of Huntsman

By Lisa Kerner

Charlotte, N.C., Oct. 23 - The Court of Appeals for the Ninth District of Texas upheld a decision by district court judge Fred Edwards awarding a temporary injunction in favor of Huntsman Corp.

The ruling moves the pending merger of Huntsman and Hexion Specialty Chemicals, Inc. closer to completion.

On July 12, 2007, Hexion agreed to acquire Huntsman in an all-cash transaction that included the assumption of debt. Huntsman shareholders approved the deal in October 2007.

Huntsman said the injunction enjoins affiliates of Credit Suisse and Deutsche Bank from filing any lawsuit "that directly or indirectly alleges that the combination of Hexion and Huntsman would be insolvent or would be in any way incapable of performing its obligations to pay off the notes" to the banks.

As previously reported, Huntsman's claims against the banks were consolidated by judge Edwards with the company's previously filed claims against Apollo Management, LP, Leon Black and Joshua Harris.

"It is time for Apollo and the banks that contracted to close on this transaction to fulfill their responsibilities," Huntsman president and chief executive officer Peter R. Huntsman said in a news release.

A jury trial is set to begin on Feb. 9. Huntsman is seeking more than $3 billion in actual damages, plus exemplary damages, attorneys' fees and interest, according to the release.

Based in Columbus, Ohio, Hexion makes thermoset resins. Huntsman is a Salt Lake City manufacturer of differentiated chemicals and pigments.

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