---

Oil storage, shipbuilding and bunker supply group Titan Petrochemicals Group Limited has announced that it slashed its losses by around two thirds last year after it posted a net loss of HK$536 million (US$69 million) in 2009, against a net loss of HK$1.6 billion in 2008.

Sales revenue dropped by HK$5.8 billion, or 81.9 percent, last year to HK$2 billion, compared with HK$7.8 billion in 2008.

Group Chairman Tsoi Tin Chun said in a statement that over the next two years the group would require funds for the development of shipyards. However, the group is reported to have also commented that it will be difficult to achieve sufficient cash flow in the near future to meet its debt and other financial obligations.

The group's results for 2009 followed Titan's restructuring programme, which focused resources on its storage and shipyard businesses, led to the divestment of its trading business and the scaling down of its supply chain operations.

In December 2009, debt-laden Titan announced its plan to restructure US$315.36 million worth of 8.50 percent guaranteed senior notes, due in 2012, to improve its capital structure and extend the notes' maturity.

The new shares represented approximately 14.8 percent of the issued share capital of the company and around 12.9 percent of the issued share capital as enlarged by the issue of the new shares.

The new notes will be due in 2015 with a single repayment. They will bear interest at the rate of 8.50 percent per annum, payable semi-annually in arrears on 15 March and 15 September of each year, commencing 15 March 2010.

The debt restructuring plan is the number one task of the group in 2010, Titan said.