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Oil storage, shipbuilding and bunker supply group Titan Petrochemicals Group Limited has said that it aims to launch a new offer to buy back its outstanding 8.50% guaranteed senior notes due 2012, after terminating a previous offer because bondholders tendered less than the minimum requirement, Dow Jones reports.

The news follows comments made by the company last week that it would be difficult to achieve sufficient cash flow in the near future to meet its debt and other financial obligations.

Titan last week reported a net loss of HK$536 million (US$69 million) in 2009, slashing losses by around two-thirds against the net loss of HK$1.6 billion posted 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.

At the end of 2009, the Titan's cash and bank balance stood at HK$358 million, much lower than its interest-bearing loans of HK$2.96 billion.

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

Titan said it was offering bondholders up to US$62.8 million worth of new notes due 2015, up to 969.7 million new Titan shares and an unspecified cash payment, in exchange for the outstanding 8.50 percent bonds.

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 were due in 2015 with a single repayment, bearing 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.

Titan is reported to have withdrawn the offer on Tuesday after bondholders holding less than 90% of the notes agreed to the offer, the company said in a statement.

A new offer would likely include new notes, shares and a cash payment, the statement said.