Mumbai-based Mercator Ltd has not paid salaries to around 350 crew members on board its dredgers and tankers for March and April, indicating that it experiences financial stress. Mercator was once considered India’s second biggest private shipping company.
Mercator confirmed that it has delayed salaries due to a downturn in the global shipping and dredging industries, especially in India.
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In order to address these problems, a Mercator executive said that the company is considering selling vessels in order to re-focus on cash flows, cut debt and limit operating losses. For this reason, it will only keep ships that are cash-positive.
In fact, last month, on April 30, Mercator sold an oil super-tanker for $27.5 million to Greek interests.
In addition, the company is negotiating with lenders to restructure its long-term debt.
Currently, Mercator owns three cargo ships and five dredgers. Of the latter, two are operating, while the other three are anchored or laid-up.
