US Huntsman to cut debt by $1bn

07 January 2009 14:02  [Source: ICIS news]

TORONTO (ICIS news)--Huntsman will use the $1bn (€740m) settlement it received from private equity firm Apollo over the terminated merger of Huntsman and Hexion Specialty Chemicals to pay down debt and boost liquidity, the US chemicals major said on Wednesday.

At the same time, Huntsman would continue its multi-billion dollar tortious interference claims against Credit Suisse and Deutsche Bank, with any proceeds going toward debt reduction, share repurchase and additional dividends, it said.

Huntsman has taken legal action against the banks for pulling out of financing the merger deal. A jury trial is expected to begin on 11 May in a court in Texas.

"We begin 2009 with cash in the bank and the objective of bringing Credit Suisse and Deutsche Bank to justice for the harm they have caused," said CEO Peter Huntsman.

($1 = €0.74)

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By: Stefan Baumgarten
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