Mercator’s creditors take action to sell bulker

Mercator’s creditors take action to sell bulker

Creditors of Mercator Lines (Singapore) are pushing a court sale of one of the now-bankrupt company’s panamax bulk carriers – in spite of the memorandum of agreement (MOA) signed in January to sell the ship to the lenders.

Trustee and escrow agency Madison Pacific Trust is acting on behalf of the syndicate of lenders to sell the vessel through a judicial sale in the Bombay High Court, a release said today.

Garv Prem (74,400 dwt, built 2006) was one of five bulkers for which Mercator signed an MOA on January 26 to sell the vessels to its lenders for $32.3m.

The vessels – Sri Prem Veena, Garima Prem, Garv Prem, Gaurav Prem and Aarti Prem – were to be sold “at market value”, Mercator said at the time. Aarti Prem has since been sold for demolition in India.

Garv Prem is currently under arrest at the port of Gangavaram, India.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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