Apollo Management was going to acquire Huntsman for $6.5 billion, but didn't want to do the deal in this environment, and neither did the banks.
So Huntsman gets a $325 million break up fee, a $250 million investment by Apollo in a ten year convert, and $425 payment.
Maybe settling with Apollo will help Huntsman's (HUN 5.85) litigation against the banks, so it makes this $5 piece of paper, a call option on a recovery in chemicals and litigation in Texas.
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