Mercator confirmed that it has delayed salaries due to a downturn in the global shipping and dredging industries, especially in India.
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.