Titan Wind-Up Petition Adjourned Again

by Ship & Bunker News Team
Thursday September 6, 2012

Titan Petrochemicals Group Ltd. (Titan) [HKG:1192] said today that the hearing of a winding up petition brought against it by U.S. private equity firm Warburg Pincus, LLC (Warburg Pincus) entity Saturn Petrochemical Holdings Ltd (SPHL) has been adjourned to September 18, 2012.

Titan said the decision was made with SPHL's consent, and at the hearing on September 18, 2012 SPHL's application to appoint joint provisional liquidators will also be heard.

The petition to wind up Titan's business was filed on July 5, 2012 with Warburg Pincus saying at the time the firm was "insolvent and should be liquidated."

The first hearing of the liquidation petition at the Supreme Court of Bermuda was on August 16, 2012 but the court adjourned the hearing until today, with a Titan company spokesman saying at the time that the decision "recognises the complexity of the situation and diverse interests of all the parties involved."

Warburg Pincus, who has invested more than $215 million in Titan, said that Titan's restructuring proposal "has significant flaws, appears unrealistic, is still very preliminary, highly conditional, and lacking in several critical details."

SPHL and SouthernPec Corporation (SouthernPec) have since formed a joint venture company in order to make an alternative restructuring proposal, which Dr. Bo Bai, an Executive Director from Warburg Pincus, said delivers superior returns when compared to that of Titan's proposal.

Ship & Bunker News Team
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