Mercantile Ports & Logistics Ltd COVID-19 Update (4000I)
01 Aprile 2020 - 11:24AM
UK Regulatory
TIDMMPL
RNS Number : 4000I
Mercantile Ports & Logistics Ltd
01 April 2020
1 April 2020
Mercantile Ports & Logistics Limited
("MPL" or the "Company")
COVID-19 Update
The Company provides an update as a result of COVID-19, which
has created unprecedented disruption to businesses and supply
chains across the globe. The Government in India has implemented
significant measures to stem the effects of the virus in India and
Prime Minister Modi announced a three-week lockdown across the
country, which requires everyone to stay at home . This action is
affecting individuals and business across India, including MPL.
In accordance with the Government's direction, the Company has
ceased activity at its site at Karanja, although security remains
in place to protect the Facility. The Company is well equipped to
enable certain staff to continue to work remotely, and contract
discussions remain ongoing with potential end-users of the
Facility. The Company can confirm that the ground works required to
implement the previously announced contract with Tata Projects Ltd
and Daewoo Engineering had been progressing according to plan and
some land was handed over to this customer to enable the contract
to commence and revenues to be generated from it from 1 April, as
scheduled. The balance of the land will be handed over following
completion of the groundworks, once Covid-19 restrictions are
lifted.
Whilst the banking environment in India remains challenging
generally, the Company is pleased to report that it does, once
again, have full access to its banking facilities, which the Board
considers to be a strong endorsement of the Company's project.
These banking facilities, together with the Company's existing cash
reserves and the actions that the Board has and will be taking,
mean that the Company is confident that it has sufficient resources
to see it through the current COVID-19 crisis.
Prime Minister Modi announced on 19 March 2020 that a Special
COVID-19 Economic Response Task Force has been set up to review and
announce relief packages for the sectors most affected by the
coronavirus outbreak. The Company awaits the outcome of this
process and will seek to benefit from such relief measures as are
appropriate.
Further announcements will be made as appropriate.
Jay Mehta , C EO of MPL stated, "These are extraordinary times
for the world and our primary concern is the well-being of our
employees, contractors, villagers and all stake-holders. I remain
very confident and optimistic about the prospects for MPL and its
business. Furthermore, I believe that there will be significant
opportunities for the Company once the COVID-19 pandemic subsides.
Our business is robust and should stand to gain from the
significant dislocation that this virus is creating and I am sure
that we can play our part in unblocking the supply chain issues
within India. We look forward to resuming normal operations as soon
as is practicable".
Enquiries:
MPL Jay Mehta
C/O Newgate Communications
+44 (0)20 3757 6880
Cenkos Securities plc Stephen Keys
+44 (0)20 7397 8900
Newgate Communications (Financial Adam Lloyd/Isabelle Smurfit
PR)
+44 (0)20 3757 6880
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END
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