Chemical maker Huntsman Corp. said yesterday  that it had received $425 million in payments from Hexion Specialty Chemicals Inc., the final installment of its $1 billion settlement for terminating an earlier buyout deal.

In July 2007 Hexion, an affiliate of private equity firm Apollo Management LP, agreed to buy Salt Lake City-based Huntsman for $6.5 billion but then tried to cancel the deal, citing Huntsman's deteriorating finances.

After a number of court challenges, Huntsman finally let privately held Columbus, Ohio-based Hexion walk away for a $1-billion settlement on 14 December. (See: Apollo raises bid for Huntsman to $6.5 billion)

On 19 December, Huntsman received a $325 million termination fee provided for in the Merger Agreement. On 23 December, Huntsman received $250 million from Apollo affiliates for 10-year convertible notes issued by Huntsman. (See: Hexion pays Huntsman $325 million termination fees)

"We have received the $1 billion in payments sooner than anticipated which puts our company in a very unique position," said Huntsman's president and CEO Peter R Huntsman. "As we look forward to the upcoming year, our balance sheet is much stronger and our business is in a greater position to prosper."

Huntsman is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.

Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman today has 13,000 employees and operates from multiple locations worldwide. The Company had 2007 revenues of approximately $10 billion.

Hexion Specialty Chemicals, Inc. is a Fortune 500 company based in Columbus, Ohio that is the world's largest producer of binder, adhesive, coating and ink resins for industrial applications. Hexion Specialty Chemicals is owned by an affiliate of the private investment firm Apollo Management LP.

Hexion was formed in 2005 through the merger of Borden Chemical, Inc., Resolution Performance Products LLC, and Resolution Specialty Materials LLC, and the acquisition of Bakelite AG.