Klaipeda, Lithuania, 2015-07-17 15:53 CEST (GLOBE NEWSWIRE) --
Every effort shall be made in order to ensure that the seafarers from arrested LSC vessels return to Lithuania
In extremely complex financial situation faced by ‘Lithuanian Shipping Company‘ (LSC), the Ministry of Transport and Communications of the Republic of Lithuania shall take every effort in order to ensure that the crews on the company‘s owned vessels could be provided with basic resources and could safely return to Lithuania.
In order to resolve the problems, the LSC Board of Supervisors and Board members were convened urgently. A decision to negotiate with the bank for the additional financing was made. The Government, owning 56.66 percent of LSC shares, cannot financially bail out the company as the European Union law prohibit for the state to directly support business companies.
Nevertheless, the Ministry of Transport and Communications together with AB SEB bankas have agreed that the company will be given a minimum credit necessary in order to provide crew with food, fuel, insurance and other urgently needed measures.
On the onset of the global shipping market downturn, starting from 2008, the company’s performance became loss making whereas the generated operating revenue was insufficient to cover the financial obligations. In order to reduce the financial burden, in 2013-2015 ‘Lithuanian Shipping Company’ sold six vessels and most of the funds allocated to reduce the commitments.
Arvydas Stropus
Chief Accountant
Ph.: +370 46 393126