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Titan Petrochemicals unveils debt restructuring proposal
Nov '13
Titan Petrochemicals Group Limited announced key indicative terms of a new debt restructuring proposal for further discussion with creditors and other relevant parties. A creditors' meeting will be held for obtaining indicative consent on the new proposal.

Without a successful restructuring, the Company would not be able to pursue new business opportunities including the possible long-term cooperation with an Asian-based leading offshore oil rig manufacturer in the oil rig manufacturing business and the utilization and adaptation of the production facilities at the shipyard in Quanzhou, the PRC (the "Shipyard") owned by one of the Company's subsidiaries, which the Company announced on 11 November 2013. The ownership of the Shipyard is now under dispute and it is proposed that such dispute be resolved as part of the restructuring.

As announced, it is proposed that the new debt restructuring proposal will be implemented by way of a creditors' scheme of arrangement (the "Scheme") and all Senior Notes and Unsecured Claims will be recognised under the Scheme. Pursuant to the Scheme, in the case of the holders of the Existing Notes, for every HK$1.00 of the amount of their claims arising under the Existing Notes, holders of Scheme Claims will agree to settle their claims by:

i) HK$0.10 in cash and HK$0.30 in new Shares to be issued by the Company at the same price per share as the initial Conversion Price of the Convertible Bonds; or

ii) HK$0.20 in cash and HK$0.10 in new Shares to be issued by the Company at the same price per share as the initial Conversion Price of the Convertible Bonds, and if any holder of the Existing Notes fails to make a selection before a specified deadline to be agreed, the Company will, at its sole discretion, select one of the above options on behalf of that holder.

In the case of holders of the Unsecured Claims, for every HK$1.00 of the amount of their claims, they will agree to settle by HK$0.10 in cash. For further details regarding the debt restructuring proposal, please refer to the announcement published by the Company on the Hong Kong Stock Exchange's website dated 25 November 2013.

Titan's CEO Tang Chao Zhang said, "The board of Titan has taken into consideration the interests of all creditors, shareholders, employees and other stakeholders before putting forward the new debt restructuring proposal. A creditors' meeting will be held on 27 November 2013. Given that the next hearing of the Bermuda court on the winding-up petition will be held on 13 December 2013, we believe that the forthcoming creditors' meeting would likely be the last chance for creditors to indicate their support for a restructuring and prospective future of Titan."

"Pursuant to the proposal, the Company will seek agreement with GZE to terminate the Sale and Purchase Agreement in relation to the equity interest in the subsidiary holding the Shipyard. Upon approval, the new debt restructuring plan would enable us to continue operations of the Shipyard and pursue the potential oil rig manufacturing cooperation with the industry leading player in Asia, as well as other business opportunities in the long run. We call for support of all parties to this new proposal and look forward to moving forward with all stakeholders in turning a new page."

Titan Petrochemicals Group

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