Mercantile Ports and Logistics Ltd (LSE:MPL) shares jumped 175% to a six-month high of 0.89p after it outlined plans to fully repay its debt and step up legal action to regain control of its Karanja terminal asset in Maharashtra, western India.
The port and logistics group said it has offered to redeem 100% of its outstanding debt before the Supreme Court of India. The proposal is now under consideration by creditors, though the process has been delayed.
A hearing in Mumbai this week directed creditors to meet the company to consider the plan, with a meeting scheduled for 10 April in New Delhi.
Mercantile Ports said it has also secured backing from an international oil and gas company, alongside support from investors, to fund a refinancing that would restore ownership of the asset.
The company has invested around £160 million in developing the Karanja facility over 15 years. It said the terminal remains revenue-generating and has not been operationally insolvent.
Managing director Pavan Bakhshi said: "We continue to be proud of the support we received from international investors to fund MPL on the London Stock Exchange and to build key infrastructure in India."
He said it was "difficult to understand why the proposal has not been considered and implemented in a timely manner" and that the company "will continue to fight to retain our asset, restore it to operational success and protect stakeholders' interests".
Shares have been volatile over the past 12 months, rising to a peak above 1.6p in August before a decline to 0.3p in December over its legal struggles.