Mercantile Ports response to insolvency petition against subsidiary

(Sharecast News) - Mercantile Ports & Logistics said on Wednesday that an insolvency petition had been admitted against its operating subsidiary following the rejection of its proposed debt settlement, but stressed that it remained in discussions to repay its borrowings in full. The AIM-traded group, which is developing a port and logistics facility at Navi Mumbai, said a resolution professional had now been appointed to Karanja Terminal & Logistics (KTPL).

It followed the company's announcement on 11 November that it had failed to secure interim relief in its appeal before the Delhi High Court, after which its debt was assigned to Prudent ARC.

MPL said it subsequently submitted a formal offer to redeem all outstanding debt and initiated proceedings before the National Company Law Tribunal in Mumbai to obtain directions enabling it to repay the obligations.

The firm said the admission of the insolvency petition did not alter its previously-stated position and that discussions with relevant parties on full repayment of the debt were continuing.

Reporting by Josh White for Sharecast.com.