AsiaDry Cargo

Mercator’s Singapore dry bulk division admits financial difficulties

Singapore: The dry bulk subsidiary of one of India’s best known names in shipping has admitted it is in serious financial difficulties. In a release to the Singapore Exchange on Friday, Mercator Lines (Singapore) said it was assessing the impact of the recent sharp deterioration of the dry bulk shipping market. The fall in freight rates and dry bulk asset prices looks like it is impacting Mercator’s cash flows and certain covenants under loan facilities.

The company said it has appointed an independent financial advisor to help out.

The Singapore subsidiary has 13 dry bulk vessels while the tanker division with eight ships is handled out of Mumbai.

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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