08 December 2008 17:51 [Source: ICIS news]
HOUSTON (ICIS news)--US polyurethanes and specialty chemicals producer Huntsman has created a litigation committee to prepare for trials related to the pending merger with Hexion Specialty Chemicals, the company said on Monday.
Company board member Wayne Reaud will be the committee's chairman. Others on the committee include company founder Jon Huntsman and Peter Huntsman, the company's CEO.
Huntsman is involved in a tangle of lawsuits connected to its troubled $10.6bn (€8.4bn) pending merger with Hexion Specialty Chemicals.
In Texas, Huntsman sued the lenders, Deutsche Bank and Credit Suisse. Huntsman accused the lenders of interfering with the merger by conspiring with Hexion's parent company, the private-equity firm Apollo Management.
Huntsman sued the lenders before they refused to finance the deal.
Earlier, Huntsman sued Apollo, accusing it and Hexion of negotiating in bad faith. Huntsman is demanding at least $3bn in damages.
Huntsman has another suit pending in Delaware, in which it accused Hexion of breach of contract. In the same Delaware suit, Huntsman accused Apollo of interfering with the merger agreement.
"With our forthcoming Delaware and Texas trials for damage claims against Apollo and its banks only months away, our chairman and board of directors are highly focused on maximising the opportunities to be addressed in the months ahead - both those presented by the current business climate and those inherent in the pursuit of our damage claims against Apollo and the banks," Peter Huntsman said in a statement.
"The formation of our litigation committee and the addition of a vice chairman to our board structure reflect an increased interest in optimizing the use of our leadership resources during this period and thereafter," he said.
In other news, Huntsman created a new board position, executive chairman, to be filled by Jon Huntsman.
($1 = €0.79)
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