OREANDA-NEWS. May 05, 2011. JSC “Latvian Shipping Company” (LSC) informs that existing contracts for 17 ships, out of a total fleet of 21 ships, were concluded by the previous management, operating till 17 December 2010, therefore the SSIA statement that the new management of the company causes damage to minority shareholders of LSC, including the national interests of Latvia, is simply wrong.

LSC regrets that the representative of the SSIA in LSC Supervisory Council O. Petersone could not find the time to participate in the last meeting of the Supervisory Council and duly represent national interests (without any explanation about her absence to LSC), as well as get additional information about any issues that were unclear to the SSIA. To the contrary, LSC has reasonable suspicions that O.Petersone may have violated the prohibition on using internal information that is fixed in the Financial Instrument Market Law by publishing (and possibly misinterpreting) internal information of LSC.

Whereas for the budgeted possible future rates for time charters set to be in force and or to be concluded in 2011 they were set at prudent and sensible numbers by the current management board earlier in 2011 in accordance with best practise and by available information at the time. This is how to run a company properly. Whether actual rates achieved are above or below the budgeted levels does depend entirely on market circumstances over the course of the year but with a professional management board in place and improved market circumstances in the last month it is hoped that earnings will improve from budgeted levels, which would be positive news for shareholders and employees of LSC.

LSC also informs that information made public by SSIA that on LSC webpage (www.lk.lv) the companies budget for 2011 is published, is wrong. Taking into account specific field of commercial activity LSC management has a policy not to disclose financial forecasts and planned performance indicators.

The new management continues work on the reduction of outrageous administrative costs of the previous management. For example, last year the Management Board of the company received remunerations in amount of 0.65 million lats, including taxes, while the Supervisory Council received most probably without legal ground 1.14 million lats in remunerations. Now LSC Management Board and Supervisory Council is working without any remuneration. New LSC management has pursued a claim against former members of the Management Board and Supervisory Council of LASCO, including O. Petersone, who is now the authorised representative of the SSIA in LSC.