Singapore-incorporated Mercator Lines, formerly an owner of bulk carriers, has applied for winding up of its business.
The application comes after the company spent months under judicial management.
During this time the appointed Judicial Manager Yit Chee Wah held discussions with several potential investors to explore transferring the company’s listing status and/or its restructuring.
The move was being pursued after the implementation agreement with Nickolaos Mitropoulous and Dimitrios Podaridis for the proposed transfer of the company’s listing status via a scheme of arrangement fell through in July.
The scheme was terminated as the investors failed “to meet their condition precedents, despite several extensions of time granted by the judicial manager.”
“Whilst these potential investors have expressed an interest in the company’s listing status, to date the company has been unable to justify an application for a further extension of the judicial management order. Accordingly, the JM has filed an application to wind up the company,” Yit Chee Wah said.
The hearing date for the winding-up application has been fixed on September 8, 2017.
Faced with liquidity shortage and poor business performance, Mercator Lines decided to exit from dry bulk business and sell its fleet of 11 dry bulkers at the beginning of 2016.
World Maritime News Staff