Titan Petrochemicals faces petition for appointment of liquidator

By Angela McDaniels

Tacoma, Wash., Aug. 2 - Titan Petrochemicals Group Ltd.'s noteholders do not support a potential windup of the company, according to a company news release.

On July 9, Saturn Petrochemical Holdings Ltd. served a petition at the Supreme Court of Bermuda for an order to, among other things, wind up the company and appoint and provisional liquidator. The petition is expected to be heard on Aug. 16.

The company said it organized a poll of July 25 of the holders of its $47.96 million of guaranteed senior convertible notes due 2015, $12.19 million of outstanding guaranteed senior payment-in-kind notes due 2015 and $105.87 million of fixed-rate senior notes due 2012 to establish the noteholders' level of support for the petition.

Titan said a majority of the noteholders have responded to the poll and an "overwhelming proportion" of these respondents voted against the petition.

Background

On June 18, Saturn Storage Ltd. exercised its redemption rights on preferred shares and convertible notes issued by Titan Group Investment Ltd., which is 50.1% owned by a Titan Petrochemicals subsidiary and 49.9% owned by Saturn Storage.

Titan Petrochemicals said that because Titan Group is an investment holding company through which it and Saturn Storage hold their interest in a China onshore storage business, Titan Group does not have immediately available funds to make the redemption payment.

Then on July 4, Titan Petrochemicals received a notice to redeem 555 million of its preferred shares from Saturn Petrochemical. The petition with the Supreme Court of Bermuda soon followed.

Titan Petrochemicals said the commencement of liquidation proceedings do no, in themselves, constitute an event of default under the PIK notes and convertibles.

The company said it is in active discussions with an independent third party about interim financing. The investment would likely result in a change of control and is conditional upon a whitewash waiver under the Code on Takeovers and Mergers being granted.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.