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Friday, 26.04.2024, 13:53
Lithuania's bankrupt shipper LJL to lay off all employees, to hire some back
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Sigitas Dobilinskas, CEO of LJL, told BNS that the layoffs would mostly affect the maritime personnel.
"Under the law, all employees have received notices and are to be laid off by Jan. 22," Dobilinskas told BNS.
"Nobody is talking about commercial operations, but the ships are docked and will need to be maintained,” the CEO said.
“It will be up to the bankruptcy administrator to decide how many people are needed to ensure that the ships are secure and properly maintained and how many shifts of sailors and how many administrative staff will be needed. A part of the laid off employees will be offered to return to work," he said.
According to information provided to BNS by the Lithuanian Labor Exchange, LJL last month issued notices to 182 people.
A court ruling declaring LJL bankrupt came into force on Dec. 29. The company has until Jan. 13 to turn over its assets to a court-appointed administrator.
LJL's debts stood at more than 22.5 million euros in late October 2015, including an outstanding loan of 12.814 million euros from SEB Bankas and 1.54 mln. euros owed to employees.
Five vessels -- all of them pledged as collateral and three detained -- make up the bulk of the company's assets.
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