Singapore-listed Mercator Lines has applied to the Singapore High Court for a stay of proceedings in a case that could see it put under judicial management.
The Indian-owned dry bulk company has also asked for leave to convene meetings of its creditors no later than four months from the date of its application, 14 September 2015.
The original application to have Mercator placed under judicial management was filed by a creditor, HSH Nordbank’s Singapore branch, on 10 September and a hearing was set down for 29 September.
The company’s financial performance has recently come under fire, as Mercator has seen its losses worsen due to the weak freight market. It has since appointed an independent financial adviser to assess and establish its financial options as part of a corporate restructuring plan.
This plan aims to strengthen the Mercator’s financial position and resolve all outstanding matters with its creditors, enabling a swift return to normal operations.
In a filing to the Singapore Exchange, the company said the appointment of a judicial manager is not in the interests of the company, its creditors, or its shareholders