Huntsman Settles Dispute with Banks over Failed Acquisition

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Researched by Industrial Info Resources (Sugar Land, Texas)--Huntsman Corporation (NYSE: HUN) (The Woodlands, Texas) has officially settled its claim against two banks considered to be at the root of failed acquisition plans by Hexion Specialty Chemicals Incorporated (Columbia, Ohio) nearly two years ago. Huntsman had settled with Apollo Management (New York, New York) for $1 billion in December of last year for its connection to the failed merger. The settlement from this week, valued at nearly $1.7 billion, when combined with the previous Apollo settlement, will go a long way to ensure Huntsman can pay down outstanding debt and support future growth or investment opportunities in the Chemical Processing Industry (CPI) around the world.

Huntsman fought these legal battles at a time that, globally, the CPI was struggling with an economic recession, only adding to the number of challenges the company faced during a period of devastating drop in demand and minimal growth opportunities. By most standards, Huntsman has weathered the economic storms well, and these settlements are expected to help position Huntsman to endure the remaining months or quarters of the current recession equally as well or better.

Industrial Info is tracking very little future capital and maintenance project activity planned by Huntsman as part of its North American Project Database--currently only $34 million of Huntsman projects. Huntsman recently completed construction of a nearly $125 million maleic anhydride (MA) unit addition in Louisiana. This new unit could be the last of the company's major investments in North America for a while as Hunstman works to capitalize on recent consolidations and re-organizations. Outside of North America, as part of a joint venture with Sasol Limited (NYSE:SSL) (Johannesburg), Huntsman is in the midst of a major MA expansion to support future growth in European and global markets.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.