Titan Petrochemicals has announced that the High Court of Hong Kong has ordered to wind up the company’s controlling shareholder Guangdong Zhenrong Energy, according to petitions filed by Industrial Bank.
Guangdong Zhenrong Energy took over financially troubled Titan Petrochemicals in 2012, and held shares in Titan through its wholly-owned subsidiary Fame Dragon International Investment, which was ordered to be wound up by the court in May.
According to Titan, Guangdong Zhenrong expressed its intention at the end of 2016 to continue supporting the company in terms of business development and financial support, and therefore the wind-up order may have material adverse impact the company’s business operation and financial position.
The company is now seeking legal advice and further evaluation on assessing impact that the event may have on the company.
Following the completion of a long restructuring process, Titan Petrochemicals has just started to develop its business from early this year with a focus on the shipbuilding and ship repair market. The company acquired Zhoushan Yatai Shipbuilding Engineering in January and also entered into a MOU with Singapore’s EMS Energy in March to fund the construction a shipyard in Singapore.
In June, Titan Petrochemicals reached agreements with its lenders to offset unpaid debts with new shares.