Hexion gets more funds for Huntsman deal

Hexion Specialty Chemicals Inc., the Apollo Management LP unit that fought to cancel its buyout of Huntsman Corp., said its parent company's investment funds and Huntsman stockholders agreed to commit more cash to close the deal.

Huntsman investors will make $217 million in additional cash commitments to Huntsman for a total of $677 million in payments, Columbus, Ohio-based Hexion said Monday in a statement. Funds managed by Apollo, the New York-based buyout firm, agreed to commit $210 million more to Hexion for a total of $750 million, Hexion said.

Hexion had tried to cancel the $6.5 billion merger, arguing that the combined company would be insolvent. A Delaware Chancery Court judge last month ordered Hexion to honor the agreement, saying a slump in chemical markets didn't give Hexion legal grounds to terminate the deal.