Huntsman to Use $1 Billion in Payments from Apollo Affiliates to Reduce Debt, Increase Liquidity
January 07 2009 - 8:00AM
PR Newswire (US)
THE WOODLANDS, Texas, Jan. 7 /PRNewswire-FirstCall/ -- 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. About Huntsman: Huntsman is a global manufacturer and
marketer of differentiated chemicals. Its operating companies
manufacture products for a variety of global industries, including
chemicals, plastics, automotive, aviation, textiles, footwear,
paints and coatings, construction, technology, agriculture, health
care, detergent, personal care, furniture, appliances and
packaging. Originally known for pioneering innovations in packaging
and, later, for rapid and integrated growth in petrochemicals,
Huntsman today has 13,000 employees and operates from multiple
locations worldwide. The Company had 2007 revenues of approximately
$10 billion. For more information about Huntsman, please visit the
company's website at http://www.huntsman.com/. Forward-Looking
Statements: Statements in this release that are not historical are
forward-looking statements. These statements are based on
management's current beliefs and expectations. The forward-looking
statements in this release are subject to uncertainty and changes
in circumstances and involve risks and uncertainties that may
affect the company's operations, markets, products, services,
prices and other factors as discussed in the Huntsman companies'
filings with the U.S. Securities and Exchange Commission.
Significant risks and uncertainties may relate to, but are not
limited to, financial, economic, competitive, environmental,
political, legal, regulatory and technological factors. In
addition, the completion of any transactions described in this
release is subject to a number of uncertainties and closing will be
subject to approvals and other customary conditions. Accordingly,
there can be no assurance that such transactions will be completed
or that the company's expectations will be realized. The company
assumes no obligation to provide revisions to any forward-looking
statements should circumstances change, except as otherwise
required by applicable laws. DATASOURCE: Huntsman Corporation
CONTACT: media, Russ Stolle, +1-281-719-6624, or investors , Kurt
Ogden, +1-801-584-5959, both for Huntsman Corporation Web Site:
http://www.huntsman.com/
Copyright
Huntsman (NYSE:HUN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Huntsman (NYSE:HUN)
Historical Stock Chart
From Sep 2023 to Sep 2024