Huntsman Receives Final $425 Million Payment From Apollo Affiliates
January 6, 2009
THE WOODLANDS, TX – Huntsman Corp. has received the final $425 million in payments from affiliates of Apollo Management, L.P. (Apollo). The payments were made pursuant to Huntsman’s agreement with Hexion Specialty Chemicals Inc. (Hexion), Apollo and certain of its affiliates to settle Huntsman’s claims in connection with Huntsman’s now-terminated merger agreement with Hexion. This payment completes the $1 billion required to be paid to Huntsman under the settlement agreement.
On December 19, 2008, Huntsman received a $325 million termination fee provided for in the merger agreement. On December 23, Huntsman received $250 million from Apollo affiliates for 10-year convertible notes issued by Huntsman.
Huntsman's President and CEO Peter R. Huntsman stated, "We have received the $1 billion in payments sooner than anticipated, which puts our company in a very unique position. As we look forward to the upcoming year, our balance sheet is much stronger, and our business is in a greater position to prosper.”