SINGAPORE - Indian-owned dry bulk shipping company Mercator Lines (Singapore) Ltd announced on Monday (Sept 14) that a creditor, the Singapore branch of HSH Nordbank AG, had on Sept 10 filed an application to the Singapore High Court for the company to be placed under judicial management.

The application has been fixed for hearing on Sept 29.

Mainboard-listed Mercator Lines said it intends to oppose the application as its board and management believe that it is not in the interests of the company, its creditors and its shareholders.

The company said it had filed an application to the court on Sept 14 for a stay of proceedings against the company and for leave to convene meetings of creditors within the next 4 months to consider and, if thought fit, to approve with or without modification a scheme of arrangement under the Companies Act.

The company said that, as previously announced on June 3. it is working closely with its creditors, independent financial advisor and legal advisors to establish a restructuring plan.

It added that negotiations with creditors and potential investors in relation to the restructuring plan "are reaching a conclusion".