Creditors of Mercator Lines (Singapore) push for court auction of bulk vessel

The vessel in question, the 74,000-dwt Garv Prem, is one of five bulkers that MLS sold to the creditors as part of a deal to reduce debts.

“Notwithstanding the memorandum of agreement dated 26 January 2016 for the sale of Garv Prem, Madison Pacific Trust Limited has taken steps, on behalf of the syndicate lenders, to sell the vessel which is arrested in the port of Gangavaram, India through a judicial sale in the Bombay High Court,” Yit Chee Wah, judicial manager for MLS, said in a statement.

In January, the judicial manager for MLS made the deal to sell the five bulkers for $32.26m to related companies of a syndicate of lenders.

The other four bulkers are named Sri Prem Veena, Garima Prem, Guarav Prem, and Aarti Prem.

Mercator International, parent firm of MLS, announced earlier that it has entered into a sale and purchase agreement to sell the entire stake of MLS to three investment companies for a token sum of just SGD3 ($2.20). The deal is expected to be completed by 25 March.

MLS was placed under judicial management on 18 January following a successful application by creditor HSH Nordbank to the Singapore courts.