Titan Outdoor Teeters on the Brink of Bankruptcy and Fails to Make Payments to Boston Transit Authority
Titan Outdoor LLC Group (Titan) offered the highest guaranteed fee in the amount of $65,250,000 over a 5-year term and $98,750,000 over a 7-year term. However, their proposal submission is considered commercially non-compliant, as they did not submit the required proposal security in the amount of $500,000 CDN with their proposal submission.
In addition, Titan failed to submit an acceptable form of contract security. Titan offered an irrevocable Letter of Credit provided by a U.S. Investment firm (Catterton Partners), contrary to the Commission’s requirements for the Letter of Credit to be drawn from a financial institution with representation in Toronto.
In 2004, when Titan Outdoor was the highest bidder in the Toronto Transit Commission’s Request for Proposals for advertising, TTC staff rejected Titan’s proposal because Titan could not provide the required financial guarantees.
That decision is turning out to have been a smart one for the TTC.
Titan Outdoor has now failed to make its contractually-obligated payments to Boston’s MBTA transit authority and has said that it will declare bankruptcy if it is forced to make the payments.
The Boston Globe, in this article, states that Titan Outdoor “is in fiscal trouble and is having trouble paying its bills.”
Last year, Titan Outdoor submitted an affidavit to the Ontario Superior Court in which it stated that signs by-law enforcement in the City of Toronto has cost it over $1 million.
