Hexion expects to be able to comply with covenants because of Apollo contribution

By Sara Rosenberg

New York, March 11 - Hexion Specialty Chemicals Inc. expects to be in compliance with all of the financial covenants under its credit facility as a result of a $200 million financing commitment from Apollo, according to a 10-K filed with the Securities and Exchange Commission on Wednesday.

The company explained that it could have had a problem meeting its leverage covenant, but the credit facility permits a default to be cured by cash contributions to the company's capital from the proceeds of equity purchases or cash contributions to the capital of Hexion LLC, its parent company.

Hexion is a Columbus, Ohio-based maker of thermoset resins.

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