Huntsman says it will receive payments totalling US$1 billion under the settlement agreement. This includes a $325 million break-up fee as provided in the merger agreement, which Hexion expects will be funded by Credit Suisse and Deutsche Bank – the banks that refused to fund the merger.

Certain affiliates of Apollo will also make cash payments to Huntsman under the settlement totalling $425 million. Some affiliates will also pay Huntsman an additional $250 million in exchange for 10 year convertible notes issued by Huntsman.

Huntsman of Woodlands, Texas, USA, says at least half the payments are to be paid on or before 31 December 2008, with the rest being due on or before 31 March 2009.

The settlement with Hexion of Columbus, Ohio, USA, does not, however, affect Huntsman's claims against Credit Suisse and Deutsche Bank in its ongoing litigation against them in Montgomery Court, Texas. The suite includes claims that the banks conspired with Apollo and “tortuously interfered” with Huntsman's prior merger agreement with Basell, as well as the later merger agreement with Hexion. A jury trial is expected to begin in May 2009.