Singapore-incorporated Mercator Lines has entered into Memoranda of Agreements to sell five bulk carriers, according to the company's judicial manager.

The vessels in question are M.V. Sri Prem Veena, M.V. Garima Prem, M.V. Garv Prem, M.V. Gaurav Prem and M.V. Aarti Prem which are secured to the syndicate lenders.

Mercator said that the vessels are sold on an arms-length basis to related companies of the syndicate lenders at market value for total net proceeds of US$32.2m. The proceeds from the sale have been used to cut the debt owing to the lenders.

As informed, the bulkers are expected to be delivered to their new undisclosed owners by February 2016.

The sale comes in the wake of Mercator Line's decision to exit dry bulk businesses as part of its restructuring endeavors.

As a result, the company plans to divest its dry bulk fleet of 11 bulkers, ranging between 70,000dwt and 92,50dwt built from 2001 to 2010.

MLS has a debt of Rs 1000 Crore and has reported a loss of US$125m for 2015, resuming a losing streak from the last three years.