Judge Sets Date For Hexion Trial

The dénouement in the Hexion-Huntsman merger saga may still be months away. A New York Supreme Court judge has set the date of Jan. 8, 2009, to commence the trial in Hexion Specialty Chemicals’ lawsuit against the two banks contracted to finance its $10.6 billion acquisition of Huntsman Corp. Hexion is suing Credit Suisse and Deutsche Bank for breach of contract. It is asking the court to force the banks to provide $15.35 billion so it can complete the deal. In its suit, Hexion acknowledged its earlier opposition to the merger. It had argued that deterioration in Huntsman’s business since the merger was signed in July 2007 created a financing shortfall. Now, Hexion says everything’s changed. Some $1.4 billion in additional equity from Huntsman and Hexion shareholders will shore up the new company’s books, it says. Also, declining oil prices and the weakening euro have improved Huntsman’s performance, the company says.