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.