Banks Refuse To Fund Hexion-Huntsman Deal

Law360, New York (October 28, 2008, 12:00 AM EDT) -- Plans to close Hexion Specialty Chemicals Inc.'s $6.5 billion acquisition of Huntsman Corp. on Tuesday morning were scrapped after affiliates of Credit Suisse Group AG and Deutsche Bank AG refused to fund the transaction over concerns that the merged entity would be insolvent.

Hexion told Huntsman late Monday night that a solvency opinion prepared by valuation firm American Appraisal Associates Inc. — which showed the merged entity would be solvent — and a solvency certificate from Huntsman's chief financial officer were not up to snuff, according...
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