Asia/Pacific News
HSH Nordbank Applies for Singapore Arm of Dry Bulk Operator To Be Placed Under Judicial Management
The Singapore branch of HSH Nordbank AG has applied to have dry bulk shipping company Mercator Lines (Singapore) Ltd placed under judicial management, Singaporean media reports.
HSH Nordbank is reportedly a creditor of the Indian shipowner, with a hearing scheduled for the end of this month.
According to reports, Mercator Lines intends to oppose the application, and has already applied for permission to meet with creditors over the next four months to hopefully agree on a scheme of arrangement.
In addition to granting a stay on proceedings, the arrangement would act as a restructuring agreement approved by courts and creditors.
“A primary aim of the scheme is to strengthen the company’s financial position and resolve all outstanding matters with all of its creditors, thus enabling a swift return to normalized operations and a strong focus on the company’s operations” Mercator Lines said in separate reports.
It was reported earlier this year that Indian bulk shippers, including Mercator, were living "hand to mouth" despite low bunker prices.
