|
|
|
|
||
Re: Lithuania Shipping Buys the Farm - articleLSC's dramatic dayDebt-ridden Lithuanian Shipping Company (LSC) today spent a few hours in bankruptcy before landing last-minute funding to keep operations alive. The state-backed owner filed a petition for initiation of bankruptcy proceedings at the district court of Klaipeda earlier today. The Lithuanian ministry of transport and communications, which owns 55.66% of the company, said that most of the company’s financial commitments are overdue. In a dramatic twist just a few hours later, it emerged that the country’s government had managed to keep the company running with a EUR 3m ($3.28m) loan from AB SEB bank. The state was not able to provide liquidity to the company due to European Union’s restrictions. But the ministry has now revealed plans to set up a new company consisting of LSC, Lithuanian Railways and other state-owned transport companies. Rimantas Sinkevicius, minister of transport and communications, said: “After the agreement to postpone the debts repayment term with the bank was reached, the company is now able to arrange with other creditors and maintain its activity.” The minister said the government will hold a meeting where the plan on payments of Lithuanian Railways’ dividends will be reviewed. LSC has offloaded six vessels of late, three of which were being held in ports due to unpaid debts. Debt collecting company Marine Debt Management (MDM) says LSC was not able to pay bills of $5,000 and $8,000, which shows the scale of the owner's struggles. Two weeks ago, the company refuted claims it had filed for bankruptcy, but new general director Valerijus Adamonis admitted that the company had debts. |
return to message board, top of board |