Lietuvos Juru Laivininkyste - Notification on material event

PC " Lithuanian shipping company " information

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