The company has referenced oil, coal and commodity price falls combined with the transition in CSG and LNG projects to production as contributors to difficult market conditions for it and its customer and suppliers.
Agreements have been entered into to restructure the company’s existing camp lease arrangements to de-hire about 60% of existing camps, defer the lease payments of the remaining camps and extend credit terms on outstanding invoices.
The agreements are being effected with various individual suppliers.
The result of the deals is expected to be a reduction in the company’s forward lease commitments balance of about $13.8 million.
In addition, the company has announced an equity capital raising of up to $6.1 million, comprising a $1 million placement to new cornerstone investor Ausdrill International.
Titan will issue 5.5 million new ordinary shares at 18c each to raise about $1 million together with 2.1 million free attaching options to acquire ordinary shares.
An entitlement offer will also issue up to 34 million shares at 15c per share to raise up to $5.1 million, if fully subscribed.
A representative of Ausdrill will be appointed to the board of Titan as a result of the raising.
Titan chairman Shaun Scott said the board’s efforts would leave Titan in a position to take advantage of “numerous opportunities” coming out of the major LNG project transitions to operations.
“The significant business restructuring we have worked hard to deliver over the last few months, coupled with a successful equity raising and the restructure of Titan’s accommodation camp lease arrangements, will position Titan to capture these opportunities when market conditions improve during 2015 as first gas is shipped from the QLD CSG-LNG projects,” he said.
