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Partner Evelyn Cruz Sroufe Quoted in Law360 Article on Buyout Troubles
News Article
12.15.2008
Partner Evelyn Cruz Sroufe was quoted in the December 15 news article in Law360, "Buyout Troubles Capped by Huntsman-Hexion Failure." The article discusses the high profile failure of a $6.5 billion merger between Huntsman Corp and Hexion Specialty Chemicals and further examines how current economic conditions, especially the credit crisis, are adversely affecting the M&A market in general.
Sroufe is quoted as saying that there is "no doubt" that the terms of deals are being renegotiated in the wake of the Huntsman-Hexion failure. And in light of the Delaware court's recent ruling against Hexion and their refusal to let them out of their agreement to purchase Hexion, Sroufe goes on to say leveraged buyout firms "are being very careful with new terms." The article states that future deals are likely to see new provisions—including material adverse effect clauses concerning earnings requirements, debt ratings preconditions, and other more buyer-friendly provisions—that will make it much easier for a buyer to terminate a deal.
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