Hong Kong: Beleaguered Titan Petrochemicals revealed today that on 1 August it entered into a subscription agreement with Guangdong Zhenrong Energy, whereby Guangdong Zhenrong will subscribe and the company will allot and issue 7,000,000,000 new adjusted shares to Guangdong Zhenrong for a total of HK$175m upon completion of the subscription. The proceeds from this subscription agreement shall be used to repay Titan bondholders and provide working capital for the company.
If the subscription agreement is implemented successfully, Guangdong Zhenrong will become the controlling shareholder of Titan.
Patrick Wong Siu Hung, executive director of Titan, commented: “This is an important step in providing a rapid resolution of the company’s current financial challenges to the benefit of all its investors, creditors, customers and employees.” [08/08/12]
