"The decision in essence has been made. The Supervisory Board, which also includes independent supervisors, and the company's Board have ordered LSC to apply to court and ask to initiate bankruptcy proceedings against the company. The deadline of the order ends today. It the company fails to do so, its shareholders will make relevant decisions," the minister to reporters.
Currently, around 100 seamen of the company's arrested vessels are stuck in five different seaports abroad. The company owes over EUR 1.5 million to its employees, while its total debt accounts for around EUR 20 million.
President Grybauskaite criticised the transport and communications minister regarding Lithuanian Shipping Company. According to the president's chief advisor Daiva Ulbinaite, in the view of the president, the Ministry of Transport and Communications, which is the main LSC shareholder, has been passively watching the worsening situation of the company for years and does not look for the necessary and effective solutions as some of the company's vessel were arrested by in May.
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.
