LPs Bristle at Apollo’s Plans for Huntsman Settlement
Date: December 23, 2008
Laura Kreutzer, of Private Equity Analyst, files this dispatch on the behind-the-scenes rancor at Apollo Management over the deal terminating its $6.5 billion buyout of Huntsman. Private Equity Analyst is a Dow Jones publication and a contributor to Deal Journal.
While Apollo Management has closed the door on its dispute with chemical company Huntsman, a related dispute with its own limited partners may only be beginning.
To settle lawsuits over the collapsed buyout, Apollo agreed to pay Huntsman a total of $1 billion. Of that, Apollo will invest $250 million in Huntsman in exchange for debt. It is also paying Huntsman $425 million, some or which it may recover from the firm’s insurance policy. The remaining $325 million is coming from Credit Suisse Group and Deutsche Bank, the lead banks that were to provide financing for the buyout.
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Source: Wall Street Journal
