Hexion Specialty Chemicals, an affiliate of investing company Apollo Management, announced on June 18 that it had filed a lawsuit to declare that its contract to acquire the major US chemical company Huntsman was no longer viable. It is to seek a court decision that the company is not obliged to pay compensation or penalties. Hexion said it was because Huntsman's debt had increased and its poor performance had lowered the profits, which constitutes a "material adverse effect." While both companies are individually solvent, Hexion believes that consummating the merger on the basis of the capital structure agreed to with Huntsman would render the combined companies insolvent, and banks would not provide the financing.

In response, Huntsman put out a statement on June 19, criticizing Hexion's decision as a contract violation and said it would insist on execution of the contract.