Asia/Pacific News
Mercator Exits Singapore Subsidiary: Reports
Mercator Limited (Mercator) will exit its Singapore-based bulk shipping subsidiary, Mercator Lines (Singapore) Limited (Mercator Lines), sources familiar with the matter have told Indian media.
Mercator owned about 66 percent of Mercator Lines upon its decision to exit the firm, and it is reported that banks are now likely to take over Mercator Lines' assets.
The news comes on the heels of the resignation of Mercator Lines' CEO Shalabh Mittal on December 28.
No official announcement has yet been made on the Singapore exit.
The Singapore-listed company, is reported to have posted a loss of Rs 625 crores ($93.7 million) and owes about Rs 1,000 crore ($149.9 million) to lenders.
Lenders are said to have previously approached a Singapore court to request interim judicial management over Mercator Lines.
At the end of December, Ship & Bunker reported that Mercator Lines had announced that it had been forced to sell three mortgaged bulkers, Kesari Prem, Gauri Prem, and Sri Prem Aparna, in order to settle the company's outstanding debt.
