Troubled Mercator Lines to sell another vessel to reduce debt

DRY bulk shipping company Mercator Lines, which came under judicial management on Jan 18, has entered into a memorandum of agreement to sell another vessel, MV Kalpana Prem.

This follows news in January that it was selling five vessels for US$32.3 million.

The latest vessel is secured to the company's major shareholder, Mercator International (MIPL), and will be sold to a third party for U$2.9 million, thereby reducing the debt owed to MIPL.

The vessel is expected to be delivered to the buyer in April 2016.

Separately, its judicial manager also said that HSH Nordbank AG Singapore Branch has filed a winding up application in the High Court of Singapore against the company's subsidiary, Varsha Vidya Inc.

The application will be heard on April 15.

Mercator Lines' chairman and non-executive director, Harish Kumar Mittal, and three other non-executive directors have recently resigned from the firm. Trading in the shares has been suspended since Nov 12.