Warburg Pincus sets up JV to restructure Titan Petrochemicals

It was reported at the time that the oil and commodity trader's acquisition would only take place if court approval was received for a Titan debt restructuring plan. Warburg's law suit against Titan, which was launched last month - for alleged misrepresentation and breaches of contract - would also need to be dismissed in order for the deal to go ahead.

The new joint venture will be able to submit a detailed proposal to court-appointed professionals for the restructuring of the company, which is currently insolvent and has experienced three failed debt restructurings in the past three years.

The proposal would see the joint venture take an 88% stake in Titan in exchange for HK$208 million ($26.84 million) in fresh capital; the company's debts would be restructured, with Saturn Petrochemical's creditor claim converted to equity; and a tender offer would be made to existing creditors to repay a proportion of the debt owed to them. This would allow Titan to continue operating as a going concern, but with a substantially reduced debt burden.

All proposals and options for the company will be considered by restructuring professionals, who are expected to be appointed as joint provisional liquidators by the Bermuda Court in September.

Earlier this month, Saturn Petrochemical and SouthernPec Corporation formed another joint venture as part of a restructuring proposal to the liquidators of Titan Group Investment Limited (TGIL), a business jointly owned by Warburg affiliate Saturn Storage and Titan Petrochemicals.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Industrials
• Greater China
• Restructuring
• Hong Kong (China)
• Warburg Pincus Asia
• Distress