Mercator reported another quarter mired in red ink yesterday with more and more creditors calling debts in.
Once India’s third largest shipowner, Mercator is now severely under pressure, with ICICI Bank the latest financial institution to chase up debts. ICICI has asked the National Company Law Tribunal to initiate insolvency proceedings against Mercator seeking dues worth more than $7m.
Bank of Baroda and Axis Trustee have sought an intervention to ensure that assets pledged to them by a Mercator subsidiary are not included in the insolvency resolution process.
The financial woes at Mercator have been ongoing for much of the last five years with reports last year of the company not paying its crew.
Today, it is involved in tankers and dredging, having seen its Singapore dry bulk operations liquidated a few years ago.