The Woodlands, Texas - Huntsman Corp. said 23 Oct that the Court of Appeals for the Ninth District of Texas has unanimously upheld the previous decision of District Court Judge Fred Edwards to award a temporary injunction in favour of Huntsman regarding its merger with Apollo Management LP subsidiary Hexion Specialty Chemicals.
The injunction prevents any of the banks involved in the merger, namely Credit Suisse and Deutsche Bank and affiliates, 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, the statement said.
"This is the third court to rule in Huntsman's favour. It is time for Apollo and the banks that contracted to close on this transaction to fulfil their legal responsibilities," said Peter Huntsman, Huntsman president and ceo, adding, "We are grateful to the courts that have protected our contractual rights."
The following day Huntsman also reported that it had received a written opinion from valuation firm American Appraisal concluding that the merged company of Huntsman and Hexion would be solvent.
Peter Huntsman said, "As vice chancellor Lamb noted in his decision following the Delaware trial, Credit Suisse testified during the trial that they are prepared to fund their commitment 'if a compliant solvency certificate can be provided' at the closing. We plan to do so, and with an independent opinion to which no reasonable lender, acting in good faith, could object."
Huntsman's £3000 million claim for damages against the banks and Apollo Management LP Leon Black and Joshua Harris is set to begin 9 Feb 2009.
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