No bankruptcy for cash-strapped Lithuanian Shipping Company for now

Algirdas Butkevičius
DELFI / Kiril Čachovskij

“We’ve decided that SEB Bankas next week will issue a 3-million-euro loan to LJL against the guarantee that will be given by Lietuvos Geležinkeliai (Lithuanian Railways),” Prime Minister Algirdas Butkevičius told reporters after a meeting with several ministers and the executives of LJL and SEB Bankas, the largest single creditor of LJL.

If the company were not rescued, its five ships would be sold very cheaply, he said.

Both Butkevičius and Transport Minister Rimantas Sinkevičius mentioned an idea to group transport companies under the umbrella of a newly established holding company.

“I intend to put forward an idea of a holding company to the governmental committee in August, if there is a chance,” Sinkevičius told reporters.

He added that SEB Bankas had agreed to defer the repayment of a nearly 15-million-euro loan, which LJL initially had to pay back on July 31.

Four of five ships of LJL have been detained in foreign ports. Some of them have run out of fuel, food and water and most of the seamen on board want to return to Lithuania.

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