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Insolvency proceedings initiated against Mercator

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.

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Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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