Warburg Pincus Sues Titan Petrochemicals Over Contracts
By Aibing Guo – Jul 20, 2012 1:36 AM ET
Warburg Pincus LLC, the New York- based private-equity firm that says it has invested more than $215 million in the companies of Titan Petrochemicals Group Ltd. (1192), sued for misrepresentation and breach of contract.
Titan, its founder Tsoi Tin Chun and two other executives are responsible for 1.48 billion yuan ($232 million) of unauthorized guarantees by subsidiaries of Titan Group Investment Ltd., Warburg Pincus affiliate Saturn Storage Ltd. said in its lawsuit with Hong Kong’s High Court yesterday.
Saturn is a shareholder in Titan Group Investment, which has been damaged and incurred potential liabilities by the guarantees, Warburg Pincus said in an e-mailed statement. The lawsuit seeks enforcement of agreements it says were breached as well as relief including unspecified damages and costs.
Titan Petrochemicals, which Warburg Pincus has asked a Bermuda court to liquidate, said on July 18 that China state- owned Guangdong Zhenrong Energy Co. has offered to buy a controlling stake in the loss-making Hong Kong-listed oil transportation and storage services provider.
Titan Petrochemicals spokeswoman Serene Goh didn’t immediately respond to two telephone calls to her office seeking comment.
The case is: Saturn Storage Ltd. and Tsoi, Tin Chun, Titan Petrochemicals Group Ltd., Titan Oil Storage Investment Ltd., Wong, Siu Hung Patrick and Tu, Chung To Allen, HCA1265/2012 in the Hong Kong Court of First Instance.
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