Mercantile Ports & Logistics starts legal action as refinancing talks fail

Mercantile Ports & Logistics Ltd. said it started legal action against a group of banks after a breakdown in refinancing talks.

The company, which operates a port facility in near Mumbai, said it believes the banks have “failed to act fairly” in not moving forward with its refinancing, according to a statement on Friday. It did not identify the banks involved.

Mercantile Ports also said a third party has bid for the company’s outstanding debt from the banks in an effort to “derail the refinancing.” It added that legal proceedings against the banks is taking place in India.


Mercantile Ports’ discussions with lenders over its debt obligation has been a sticking point for months. In February, it said the inability to break the impasse over the refinancing had hurt its ability to secure longer-term contracts.