Titan Petrochemicals Group announces entry into several agreements

By Caroline Salls

Pittsburgh, April 8 – Titan Petrochemicals Group Ltd. entered into a series of agreements, according to a business update released Friday.

The agreements include the following:

• The company entered into a purchase order framework agreement with Falcon Energy Group Ltd. (FEG) subsidiary FTS Derricks Pte. Ltd. (FTSD) under which FTSD has conditionally agreed that it will procure purchase orders to be placed with TQS for the construction of one semi-submersible and two jack ups within one year from the effective date of the framework agreement at prices to be determined by negotiations based on the then prevailing market price;

• The company said it also entered into a purchase order memorandum of understanding with (Guangdong Zhenrong Energy Co., Ltd. (GZE) under which GZE conditionally agreed in principle that it will procure purchase orders to be placed with Titan Quanzhou Shipyard Co. Ltd. (TQS) for the construction of two semisubmersibles, four jack ups and two floating, storage, regasification units at prices to be determined by negotiations based on the then prevailing market price;

• Titan Petrochemical, Titan Petrochemicals (Fujian) Ltd. (TPFL) and Titan TQSL Holding Co. Ltd. entered into a shipyard termination agreement with GZE under which the parties conditionally agreed that the shipyard sale and purchase agreement be terminated;

• In connection with RMB740 million that was originally paid by Grand China Logistics, the rights to which were subsequently assigned to GZE, Titan will issue 9,382,164,000 new shares at the issue price of HK$0.10 to GZE in lieu of repayment;

• GZE also entered into a working capital loan agreement with TQS under which GZE has agreed to provide a loan of not less than RMB 60 million to TQS for its working capital;

• In addition, as part of the group’s continued efforts to restructure its debt, Titan said members of the group entered into debt rescheduling agreements with GZE under which GZE has conditionally agreed to reschedule the repayment of the group’s debt,. With the first repayment date postponed until May 5, 2017.

• TQS entered into an assumption agreement with Fame Dragon International Investment Ltd. and Titan in connection with debt arising from some accounts payables and other payables of TQS. Under this agreement, Fame Dragon will assume payables by TQS in consideration for Titan agreeing to issue new shares.

Fame Dragon will assume liabilities up to a maximum amount of RMB 282.06 million. The number of assumption consideration shares to be issued to Fame Dragon will be 3,595,420,415. The shares will be issued on the date of resumption of trading in Titan’s shares;

• In connection with TQS bank loans that were assigned to Fujian Wonderful in 2014, TQS entered into loan rescheduling agreements under which Fujian Wonderful has agreed to postpone the first repayment date of the loans assigned to Fujian Wonderful until three years from the date of the rescheduling agreements;

• To help strengthen the group’s position in connection with its expansion into the offshore and marine engineering sector, Titan said the group entered into a management services agreement with FELS Offshore Pte. Ltd.

One of the conditions to the management services agreement is the issuance to FELS of warrants, which will entitle the holder to subscribe in cash for shares representing 9.9% of the total issued share capital of Titan after the completion of its restructuring.

As previously reported, trading in Titan’s shares was suspended as of June 19, 2012. The company said trading will remain suspended until further notice.

Titan Petrochemicals is a Hong Kong-based trader of petrochemicals and oil products.

© 2015 Prospect News.
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