EMEA News
Bankruptcy Proceedings Initiated for Lithuanian Shipping Company
PC Lithuanian Shipping Company (LSC) says the Klaipėda Regional Court Tuesday initiated bankruptcy for the company, a decision that comes into force 10 days after its adoption.
The news comes after the company reported filing for bankruptcy on November 27.
In July, Ship & Bunker reported that LSC looked to have finally succumbed to bankruptcy following an official announcement, only to withdraw the application shortly afterwards.
At the time, Algirdas Butkevičius, Lithuania's Prime Minister, said that LSC would receive a €30 million ($32.92 million) loan from AB SEB bankas (SEB), and noted that measures had been taken to ensure that the company's vessels continue sailing.
The state-owned company, which is said to employ 237 workers and was operating five vessels as of the end of September, is reported to have accumulated losses of €20 million ($21.87 million).
For the January to September period 2015, the company is said to have reported an income of €8.1 million ($8.94 million), down 48 percent from the same period last year.
Meanwhile, the company's operating losses during the first nine months of 2015 are reported to have equaled €7.3 million ($7.98 million), up from €4.6 million ($5.03 million) during the same period of 2014.
In July, Ship & Bunker reported that the state-controlled shipowner said European Union (EU) rules prevented the Government from giving the loss-making company extended assistance in what it described as an "extremely complex financial situation."
