HEXION AND HUNTSMAN MERGER DELAYED; BANKS REFUSE TO FUND (10/28/08)
October 28, 2008
Hexion Specialty Chemicals Inc. has announced that it received correspondence from counsel to affiliates of Credit Suisse and Deutsche Bank on the evening of Oct. 27 stating that the banks do not believe that the solvency opinion of American Appraisal Associates and the solvency certificate of Huntsman Corp.'s chief financial officer meet the condition of the commitment letter, and stated that as a result the banks do not plan to fund the proposed closing of the merger scheduled for Oct. 28.
Hexion strongly disagrees with the banks' position and has advised them of their obligation to fulfill the financing commitment for the merger. While Hexion intends to meet and work with the banks to try to complete the merger, if the banks do not fund their commitment, Hexion will vigorously enforce all of its contractual rights.