Just how do you know could "hold out" long enough to survive all the appeaals that would have grown out of any trial against Apollo/Hexion? HUN's financials were not strong enough to weather a long court battle, and I suspect Apollo agreed to help HUN in its suit against the banks as part of the settlement.
They didn't win against Hexion....they settled before it went to court. They obviously needed a quick cash infusion and they got it otherwise it could have dragged on and on. Now they have key witnesses against the Banks and the Banks have deeper pockets. I believe HUN's management made a smart decision by taking this course of action. I don't believe this will go to trial...the only question is how much will the Banks offer to settle and whether HUN will accept the amount offered. My gut feeling is that HUN wants a minimum of 1.5 billion. If it goes to trial and the Banks lose...they could lose 3x that amt.