Titan Petrochemicals has announced it has received a notification letter from a law firm representing the bankruptcy manager of its controlling shareholder Guangzhou Zhenrong Energy (GZE), which is currently in compulsory liquidation.
The bankruptcy manager claims that Titan Quanzhou Shipyard, the fully-owned subsidiary of Titan Petrochemicals, owes RMB1.465bn ($217m) to GZE and demanded repayment within seven days.
Titan Petrochemicals said it is now seeking professional advice to deal with the issue.
Oil trader GZE took over Titan Petrochemicals in 2012, saving the latter from bankruptcy. In 2017, the High Court of Hong Kong ruled to wind up GZE according to petitions filed by Industrial Bank.
