World News
Titan Bondholders Voice Support For GDZR Deal
Bondholders of Titan Petrochemicals Group Ltd. (Titan) [HKG:1192] in a press release Tuesday voiced their support for the sale of almost 90% of the company to Chinese oil trader Guangdong Zhenrong Energy Co. Ltd (GDZR).
In an emailed statement, Jonathan Chia Croft, Chief Investment Officer, LONSIN Global Credit Fund who is a member of the bondholder committee said, "We believe that the liquidation of Titan is not in the best interests of the wider range of stakeholders including creditors, shareholders and employees.
"The alternative plan seeking liquidation has also been presented to us and we fail to see where any advantage lies and conclude that the interests of Saturn Petrochemical, who also have a direct interest in TGIL, may not be aligned to ours."
"Further, we believe from past experience that a formal liquidation process of a company such as Titan could take years to settle, the outcome would be uncertain and hence the benefit to bondholders under such a process is difficult to quantify. Further, it is likely that very significant liquidators and lawyers costs will be incurred which will be paid in priority to the other creditors," he added.
Croft said it was his belief that "through negotiations with Guangdong Zhenrong and Titan, the bondholder committee will secure a significant improvement in terms. Under the circumstances it is our opinion that this is the best option available to bondholders."
On July 17, 2012, a court hearing in the British Virgin Islands ruled Titan's StorageCo entity should be to be liquidated following a winding up petition brought against it by U.S. private equity firm Warburg Pincus, LLC, (Warburg Pincus) who has invested more than $215 million in the business it now describes as "insolvent and should be liquidated."
An August 1, 2012 GDZR agreed to buy 89.95% of Titan for HK$175 million (USD $22.6) through the subscription of 7 billion newly issued shares.
Titan has US$166 million worth of bonds outstanding.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 509.00 | 4.50 | 623.00 | 3.00 |
| Rotterdam | 463.00 | 7.00 | 623.50 | 2.00 |
| Houston | 471.50 | 4.50 | 627.50 | 3.50 |
| Fujairah | 501.00 | 4.50 | 714.00 | 1.00 |
| Global 20 Ports Average | 529.00 | 2.50 | 714.50 | 2.50 |
| Global 4 Ports Average | 486.00 | 3.00 | 647.00 | 2.50 |
| Global Average Bunker Price | 572.50 | 2.00 | 753.00 | 2.00 |
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