Singapore’s dry bulk shipping company Mercator Lines Limited has been forced to sell three bulkers under mortgage.
Namely, the company received a notice of enforcement from its undisclosed lender, who is the mortgagee of the vessels, requesting that the vessels be sold to settle the outstanding debt.
The bulkers in question are the 1997-built Kesari Prem, 2007-built Gauri Prem and 2001-built Sri Prem Aparna.
As a result, the company has entered into three separate Memoranda of Agreement (MOA) to sell the second-hand ships to related companies of the lender on arms-length basis.
The bulkers were sold at market value for total net proceeds of USD 14.8 million, thereby reducing the company’s debt by the sale price.
The vessels are expected to be delivered to the buyers in December 2015 and January 2016, Mercator said.