NEW YORK (Reuters) – A New York judge denied a bid by Apollo Management LP’s Hexion Specialty Chemicals unit on Friday to extend a commitment by two banks to fund its proposed $6.5 billion buyout of chemicals firm Huntsman Corp (HUN.N).
The ruling by New York State Supreme Court Judge Eileen Bransten means that a commitment letter — an agreement under which Credit Suisse AG (CSGN.VX) and Deutsche Bank AG (DBKGn.DE) would fund the deal — will expire November 1. The banks had argued the letter should not be extended.
A lawyer for Hexion said in court they would appeal the decision.
Hexion sued Credit Suisse Group and Deutsche Bank in New York on Wednesday, alleging the banks breached their obligations under the commitment letter by refusing to fund the deal.
(Reporting by Megan Davies; additional reporting by Michael; Erman; editing by Jeffrey Benkoe)