Jan 7 2009
On December 30, 2008, Huntsman Corporation (NYSE: HUN) announced receipt of the final payment of the $1 billion in payments made in December by affiliates of Apollo Management, L.P. ("Apollo") pursuant to a settlement agreement with Huntsman. Net proceeds from the $1 billion in payments (excluding fees and expenses) will be used to reduce the company's indebtedness and to increase liquidity. The company expects the cash tax impact to be minimal.
Huntsman will continue its multi-billion dollar tortious interference claims against Credit Suisse and Deutsche Bank (the "Banks"). A jury trial on those claims is set to begin on May 11, 2009, in Montgomery County, Texas. The company would expect the uses of any proceeds resulting from the litigation against the Banks to drive shareholder value through debt reduction, share repurchase or payment of an additional dividend.
Peter R. Huntsman, President and CEO of Huntsman Corporation, stated, "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."
In an unrelated matter, Huntsman also recently announced receipt of an additional payment of $40 million from certain reinsurers relating to an outstanding insurance claim resulting from the April 29, 2006, fire at its later divested manufacturing facility in Port Arthur, Texas. Huntsman has, additionally, claimed approximately $235 million as presently due and owing and unpaid under its insurance policy for losses caused by the fire. Huntsman anticipates filing additional claims as well.
Huntsman has filed a motion to dismiss a lawsuit against Apollo and its affiliates that had been pending in Texas state court in Montgomery County, Texas. Huntsman's counterclaims against Hexion Specialty Chemicals, Inc., Apollo and its affiliates in the Delaware Court of Chancery have been stayed, pending the filing of a motion by the parties to dismiss all claims and appeals in Delaware.