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Hexion Files Suit to Terminate Huntsman Purchase

COLUMBUS, OH/THE WOODLANDS, TX – Hexion Specialty Chemicals Inc. has filed suit in a Delaware Court to declare its contractual rights with respect to its $10.6 billion merger agreement with Huntsman Corp., effectively terminating the deal. Hexion said in the suit that it believes that the capital structure agreed to by Huntsman and Hexion for the combined company is no longer viable because of Huntsman's increased net debt and its lower-than-expected earnings. While both companies individually are solvent, Hexion believes that consummating the merger on the basis of the capital structure agreed to with Huntsman would render the combined company insolvent.

In response, Huntsman has filed suit against Apollo Management and partners Leon Black and Joshua Harris. The suit claims fraud and tortious interference in connection with inducing Huntsman to terminate its merger agreement with Basell to enter into a merger agreement with Apollo-affiliate Hexion Specialty Chemicals instead. In the petition, Huntsman seeks damages exceeding $3 billion, plus exemplary damages. The company also plans to contest the allegations made about its performance.

For additional information, visit www.hexion.com and www.huntsman.com.
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