9th Apr 2026 17:52
Mercantile Ports & Logistics Ltd - operator and developer of a port and logistics facility in Navi Mumbai - Confirms that it is still pursuing all available legal remedies to regain control of its Karanja Terminal & Logistics Pvt Ltd, or KTPL, asset. It had previously agreed a settlement with the consortium of banks which held its debt, but this was annulled as one bank did not sanction it, after which it offered to redeem its entire debt before India's Supreme Court. Says the court has directed the Committee of Creditors, led by Prudent ARC Ltd (which now holds MPL's debt following a previous transaction) to consider the redemption proposal. "Despite the passage of a significant period of time, the CoC is yet to consider or take any action to implement the proposal," MPL says. Adds that third parties have submitted two separate resolution plans to the CoC to acquire the asset through the insolvency process, further underscoring MPL's fears that the process was "intended to transfer the asset away from the company and its international shareholders." A meeting with the CoC has been scheduled for Friday, after which MPL expects to update shareholders.
MPL also says it has executed an agreement with "a leading international oil and gas company, amongst others". The other party will invest "a significant part of the amount required to redeem the outstanding debt in full, as well as offering funds for the future development of the project." Adds that it has received "strong support" from UK and international investors to refinance the debt, and reiterates that Karanja "has never been operationally insolvent and remains revenue generating." Adds that it "believes its proposal represents a clear and direct route to full recovery for financial creditors and maintains that the current situation reflects a failure of the process rather than any underlying financial incapacity."
Current stock price: 0.60 pence, up 85% on Thursday in London
12-month change: down 39%
By Emma Curzon, Alliance News reporter
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