(Source: Associated Press/AP Online)
THE WOODLANDS, Texas - Chemicals maker Huntsman Corp. says it has reached a $1.7 billion settlement with two banks over its accusation they schemed to scuttle a $6.5 billion buyout of the chemicals maker last year.
The agreement with Switzerland's Credit Suisse and Germany's Deutsche Bank ends a trial in Texas state court on fraud charges, Huntsman says.
Under the terms of the settlement, the banks will pay Huntsman $620 million in cash, $500 million secured loan financing, $600 million in unsecured note financing and $12 million in legal costs.
Huntsman claimed the banks worked behind the scenes to renegotiate a funding agreement with Hexion Specialty Chemicals' owner, the private equity firm Apollo Management.
Messages seeking comment were left with Credit Suisse and Deutsche Bank.
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