The Investor Sentiment - Equity and investments forum for Sri Lankans

Join the forum, it's quick and easy

The Investor Sentiment - Equity and investments forum for Sri Lankans
The Investor Sentiment - Equity and investments forum for Sri Lankans
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Please send an email to if you face any technical difficulties when posting
Display results as :
Advanced Search
Latest topics
Browns Investments updateTue Feb 02, 2021 2:38 pmYin-Yang
ACL CablesWed Dec 30, 2020 7:22 pmsubash
Merry Christmas to AllTue Dec 29, 2020 4:53 pmchutiputha
Trading Journal Sat Dec 12, 2020 11:33 pmxmart
HVA FoodsFri Dec 04, 2020 10:25 amThe Invisible
Tokyo CementMon Nov 23, 2020 9:42 amRajapaksap
Insider Dealings Fri Nov 20, 2020 2:30 ampjrngroup
UML United MotorsTue Nov 10, 2020 8:50 amThe Invisible
ExpolankaMon Nov 09, 2020 8:46 pmsmallville
Plantation Sector UpdatesSat Nov 07, 2020 8:15 amRajapaksap
HAYC - HaycarbFri Nov 06, 2020 12:11 pmsubash
LWL.N0000 (Lanka Walltiles PLC)Fri Oct 16, 2020 12:50 amsubash

Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Go down
The Invisible
The Invisible
Posts : 3089
Join date : 2016-11-28
Age : 41

Mercantile Shipping Empty Mercantile Shipping

Mon Jul 29, 2019 3:11 pm
Message reputation : 100% (1 vote)
Sri Lanka’s Mercantile Shipping to sell ships to repay debt

ECONOMYNEXT –Sri Lanka’s Mercantile Shipping Company is to sell two cargo ships owned by a subsidiary, Mercantile Emerald Shipping (Private) Limited’s (MESL), which has been unable to repay foreign borrowings amid mounting losses.

The move will help revive Mercantile Shipping as a going concern and be taken off the watch list of the Colombo stock exchange.

Mercantile Shipping said in a stock exchange filing the two ships, Mercs Uva and Mercs Uhana, have been mortgaged to Bremer Landesbank-Germany, now merged with Norddeutsche Landesbank, from which Emerald has borrowed.

Mercantile Shipping has written off the 237.6 million rupees it invested in the Emerald Shipping subsidiary which has been making continuous losses and is unable to make capital and interest payments on its debt.

The book value of the ships owned by Emerald Shipping after impairment was given as 13.2 million US dollars as at 31 Match 2019.

But the broker’s estimated of the sale value of each ship is about 4.8 – 5.1 million dollars as at July 2019.

The group has been in talks with Bremer Landesbank on rescheduling the loan of its subsidiary Mercantile Emerald Shipping which it has guaranteed.

Under the mortgage, the bank can seize the ships and sell them.

The loan outstanding is 22.5 million dollars and interest outstanding is a million dollars.

Mercantile Emerald Shipping lost just over a million dollars in the year to 31 March 2019 with accumulated losses now 15.3 million dollars.

Mercantile Shipping said it has decided to allow the bank to sell the vessels.

Norddeutsche Landesbank has agreed to discharge Mercantile Shipping of all liabilities under the loan deal if it agreed to sell the ships.

(COLOMBO, 29 July, 2019)
Back to top
Permissions in this forum:
You cannot reply to topics in this forum