Banks refuse to fund Huntsman-Hexion merger

28 October 2008 10:11  [Source: ICIS news]

SINGAPORE (ICIS news)--Credit Suisse and Deutsche Bank have refused to fund the merger between US chemical firms Hexion and Huntsman, barring the scheduled conclusion of the deal on Tuesday, Huntsman said in a statement.

A counsel to the banks has informed Hexion that the solvency opinion and certificate promised by Huntsman did not meet the conditions set to proceed with the merger, Huntsman said.

“Huntsman will continue to enforce its rights under the merger agreement and various court orders and will seek to consummate the merger promptly,” the company added.

Huntsman said on Friday an appraisal firm – American Appraisal - has issued an opinion saying that the $10.6bn merger between Huntsman and Hexion would produce a solvent company.

An updated opinion is expected when the merger is about to close.

Hexion had earlier challenged the merger in court in a Delaware state court, claiming that the merger would produce an insolvent business but the court ruled that the merger should proceed as planned.

For more on Hexion and Huntsman visit ICIS company intelligence
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By: Leon Toh
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