Every effort shall be made in order to ensure that the seafarers from arrested LSC vessels return to Lithuania

Date

2015 07 17

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Every effort shall be made in order to ensure that the seafarers from arrested LSC vessels return to Lithuania
Every effort shall be made in order to ensure that the seafarers from arrested LSC vessels 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 Bank 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.