The once booming business of private equity faces an uncertain future. What’s not uncertain, however, is that many private equity deals are imploding from the weight of leveraged debt and greed. Inevitable bankruptcies will result in higher unemployment and a deeper recession.

Private equity is an asset class consisting of equity securities in operating companies that are not publicly traded.  The name “private equity”is the rechristened, kinder and more gentile label for what used to be known as leveraged buyouts, or LBOs. But make no mistake about it, while leverage may not be part of the name any more, it remains a big part of every private equity deal.

LBO firms, or “franchises”, as Henry Kravis, co-founder of Kohlberg Kravis Roberts & Co. (KKR), likes to call his shop, acquire publicly traded operating companies. Then they streamline management and operations to increase profitability and hope to cash out

Chemical-maker Huntsman Corp. (HUN) is in news today after its stock price shot up by a whopping 68% in the morning following a favorable court verdict. The stock is currently trading at $11.78, up 60.68% since the morning.

A Delaware court on Monday ordered private equity firm Apollo Management and its unit Hexion Specialty Chemicals Inc. -- trying to back out of a merger deal inked with Huntsman in 2007 as it was no longer viable -- to honor terms of their $6.5 billion offer to acquire the company.

Huntsman was then valued around $10.6 billion. The company is now seeking damages worth around $3 billion from Apollo and partners Leon Black and Joshua Harris, reports MarketWatch.