Mercator applies for stay of proceedings against company

MERCATOR Lines said on Monday that it has applied to the court for a stay of proceedings against the company, and for leave to convene meetings with its creditors within the next four months. Its creditor, the Singapore branch of HSH Nordbank AG, had on Sept 10 filed an application to the Singapore High Court for the company to be placed under judicial management. The application has been fixed for hearing on Sept 29.

Mercator Lines, a dry bulk shipping company, said it intends to oppose the judicial management application as its board and management believe that it is not in the interests of the company, its creditors and its shareholders.

The company said that, as previously announced on June 3, it is working closely with its creditors, independent financial adviser and legal advisers to establish a restructuring plan. It added that negotiations with creditors and potential investors in relation to the restructuring plan "are reaching a conclusion".