Debt-ridden Mercator Lines rejects proposed judicial management move

It’s proposing a debt restructuring plan.

Mercator Lines has asked the High Court for a stay of legal proceedings against the company for four months.

Earlier last week, its creditor HSH Nordbank AG filed an application to put the company under judicial management, with the application slated for hearing on September 29.

Mercator Lines wants to establish a debt restructuring plan with its creditors to strenghten its financial position and help it resolve outstanding debts.

"The Board and Management believe that the appointment of a judicial manager is not in the interests of the Company, its creditors and its shareholders and thus, the Company intends to oppose the JM Application," Mercator Lines said in a statement.