The financially troubled dry bulk shipping company Mercator Lines (Singapore) Limited has requested for the trading of its shares at the Singapore Exchange to be suspended after HSH Nordbank AG Singapore Branch, the company’s creditor, asked for an interim judicial manager to be appointed.
Back in September, HSH Nordbank filed an application at the Singapore High Court for the Indian-owned Mercator Lines to be placed under judicial management.
Mercator Lines responded by asking the court for a stay of proceedings against the company to oppose the application for judicial management.
The company also applied for a leave to convene meetings of creditors no later than 4 months from the date of its application.
The hearing for both applications has been fixed for November 20.
Mercator Lines says that the request for the stock trade suspension is a preemptive measure to stop any abnormal price fluctuations in the share price. If the request is approved, the shares will be suspended from SSE as of November 12.
Following a USD 11.9 million net loss recorded for the quarter ended September 30, Mercator Lines marked three and a half years of consecutive losses.