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2008-06-13 15:36:04 CEST 2008-06-13 15:37:04 CEST REGULATED INFORMATION Linas AB - Notification on material eventRegarding the initiation of bankruptcy case of AB “Linas” subsidiary company “Lino audiniai”During 01-04 months of the year 2008 the sales income of AB “Linas” subsidiary company “Lino audiniai” was 17.850 thousand Lt. During the same period of year 2007 the sales income was 21.292 thousand Lt. During 01-04 months of the year 2008 the loss was 4.542 thousand Lt. The result of the last year's same period was 32 thousand Lt before taxation. Bad results of 01-04 months of year 2008 were influenced by negative atmosphere of the business - increased inflation, increased costs, the slow down of the economy. The production cost of AB “Linas” subsidiary company UAB “Lino audiniai” increased because of price increase of raw materials, increased prices of labor cost and technological energy. At the same time the prices for ready made products did not increase, because the usage of textile products has got slower during the economic crisis and sharp competition with Asian textile producers. At the moment AB “Linas” subsidiary company UAB “Lino audiniai” is using only 55% of production capacity. The company is unable to pay for received goods, to return credits and to fulfill other pecuniary obligations. After elimination of import quotas for the textile goods which are delivered to European Countries the competition of Asia countries, especially China, is very sharp, the lack of materials and assets are decreasing production and sales volumes of UAB “Lino audiniai”. The members of Board and managers, feeling the responsibility against the company's employees, put a lot of efforts in order to secure business activity of UAB “Lino audiniai”. It was tried to specialize the business by dividing the business into the group of companies and to make effective management. In order to keep working places and to decrease production costs, a lot of economical, strategic and marketing measures were taken. But the worsening economical situation is forcing to take radical measures in order to avoid much more harm for employees, shareholders and business partners. That is why members of AB “Linas” Board evaluated inside and outside business possibilities and above mention reasons, has taken the decision on June 13, 2008 to oblige the administration of subsidiary company UAB “Lino audiniai” to initiate the case of bankruptcy of UAB “Lino audiniai” and to execute all actions in connection with this decision, which are indicated by the law of Lithuanian Republic. Further activity of the company will depend on the volition of the creditors. Director of AB “Linas” Ramunas Lenciauskas Tel.: +370 45 506100 |
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