Battle Between Hexion & Huntsman

I've been trying to get my head around the on-going battle between Hexion Specialty Chemicals, owned by Apollo Global Management, and Huntsman Corporation over the apparent failure of the proposed merger between the two. Not surprisingly, a legal battle has emerged from the remains of the deal that was once considered a match made in heaven.

It comes down to financing - there is none. The banks that were signed-on to provide the money for the deal have backed-out as a result of Hexion's inability to meet the solvency requirements stipulated in the deal. While Huntsman has waived those requirements as part of the merger agreement, the banks still require them and are not willing to put-up the money that's needed for the deal to go through. As a result, Huntsman is now suing Hexion for damages. What makes this interesting, however, is that Hexion is claiming (and I have to admit that I'm tempted to agree) that they have not breached the agreement and are therefore not liable for any damages.

The story isn't that simple, of course. The agreement further stipulates that Hexion has to make a best effort to find alternative financing, but how can it realistically do so if it can't meet solvency requirements as defined here:

... (a) the combined entity’s assets will be less than its liabilities; (b) the combined entity will not have the ability to pay its total debts as they become due; and (c) the combined entity will have an unreasonably small amount of capital with which to conduct its business.

Put yourself in the shoes of the banks considering this deal; would you invest? Yeah, me neither. If that's the case, then, how can Hutsman persist with its claims for damages?