The Woodlands, Texas - Huntsman Corp. has reached an agreement with Credit Suisse and Deutsche Bank to settle Huntsman's claim for fraud and tortious interference relating to the company's terminated merger agreements with Basell and Hexion Specialty Chemicals, Huntsman said 23 June.
The settlement terms see the banks pay polyurethane supplier Huntsman $620 million in cash, $500 million senior secured term financing and $600 million unsecured note financing - both with seven year terms, and a $12 million reimbursement of litigation costs, the statement said.
Following Huntsman's $1000 million settlement with Hexion and Apollo in Dec 2008, the group's total settlement proceeds are now over $2700 million.
"The cash and financing will enhance our already enviable cash position to more than approximately $1.7 billion and provide us much greater flexibility as we manage our business," said Huntsman ceo, Peter Huntsman. "The financing offers us a much lower average cost of borrowing and extends the maturities of our borrowings such that the earliest meaningful maturity is July 2012. We are well positioned to prosper as we move forward past this concern," he added. (RD)