Bank wants Mercator put under judicial manager

SEPTEMBER 14, 2015 — Troubles are mounting for Indian owned, Singapore listed, bulker specialist Mercator Lines (Singapore) Limited. Back in June, the company revealed that it was working with creditors, its independent financial advisors and legal advisors to come up with a restructuring plan and that negotiations with creditors and potential investors were reaching a conclusion.

In a stock exchange filing today, however, Mercator said that on September 10 creditor HSH Nordbank AG Singapore Branch filed an application with the Singapore High Court to have the company be placed under the judicial management of a judicial manager and that the hearing on that application is fixed for September 29.

Mercator says its board and management believe that the appointment of a judicial manager is not in the interests of the company, its creditors and its shareholders and that it intends to oppose application.

It has filed an application with the court for leave "to convene meetings of creditors no later than 4 months from the date of the application for the purposes of considering and, if thought fit, approving with or without modification a scheme of arrangement under section 210 of the Companies Act (Chapter 50) and for a stay of proceedings against the Company."

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