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HSH Nordbank makes judicial management application against Mercator Lines (Singapore)

HSH Nordbank makes judicial management application against Mercator Lines (Singapore)
HSH Nordbank’s Singapore Branch has applied to the courts to have Mercator Lines (Singapore) placed under judicial management.

The struggling dry bulk shipowner and operator, is the Singapore-listed arm of Indian shipowner Mercator. Mercator Lines (Singapore) said in a statement to the Singapore Exchange that HSH Nordbank had filed an application 10 September to have the company placed under judicial management with hearing date set for 29 September.

Mercator Lines (Singapore) said it intended to oppose the application as it was “not in the interests of the company, its creditors and its shareholders”.

Meanwhile the Singapore company has an application with the court to allow it to convene creditors meetings in no more than four months time to consider a scheme of arrangement, which is a court and creditor sanctioned restructuring plan under Singapore law. In the meantime there would a stay of proceedings against the company.

“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 said.