Asia/Pacific News
Titan Raises Funds, Seeks Return to Market
Troubled oil trading and logistics firm Titan Petrochemicals Group Ltd. [HKG:1192] (Titan) has announced the raising of HK$130 ($16.7 million) of new investment, and also said it plans to get its shares trading again by the end of the year.
The fund raising came from the subscription to convertible bonds amounting to HK$50 million ($6.4 million) from SGX Mainboard-listed offshore oilfield services provider Falcon Energy Group (FEG) via its wholly owned subsidiary CGL Resources ltd., while HK$80 million ($10.3 million) comes from New Berkeley Corporation, whose owners Tan Pong Tyea and Cai Wenxing were said to also be directors of FEG.
Trading of Titan's shares was suspended in June last year following legal action by one of its creditors, private equity firm Warburg Pincus, LLC (Warburg Pincus), for what it claimed was breach of contract and misrepresentations regarding the financial position of some of its subsidiaries.
A winding up petition brought against Titan by Warburg Pincus entity Saturn Petrochemical Holdings Ltd (SPHL) on July 5, 2012, which has been adjourned six times so far, is currently scheduled to be heard on May 1, 2013.
At the same time an application by Titan to strike out the petition on the grounds that SPHL itself is not a creditor or contributory of Titan will also be heard.
Titan executive director Patrick Wong Siu-hung said that he hopes to have the petition set aside and its shares trading again by the end of the year, the South China Morning Post reports.
