Panevezio Stiklas restructuring action

Panevezys area court recently started the restructuring action for Panevezio Stiklas, the leading glass manufacturer in Lithuania, so as to avoid the company bankruptcy.
The creditors were supposed t…

Panevezys area court recently started the restructuring action for Panevezio Stiklas, the leading glass manufacturer in Lithuania, so as to avoid the company bankruptcy. The creditors were supposed to file their claims to the debt-ridden glass factory by September 10. The restructuring action has also won support from the shareholder meeting of Panevezio Stiklas and its major holder, Polish Warta Co. Polish investor Warta, which privatized the Lithuanian glass-making factory, took over some LTT 100 million litas company loans and is bound to repay them in period 2003-2017. In addition, the company gas got a burden of debts to suppliers, workers and other creditors. Warta Co, however, has been fulfilling its commitments so far intending to increase shortly the authorised capital of Panevezio Stiklas by additional LTT 6.98 million litas up to LTT 56.97 million litas. Overall investments of the Polish company in machinery of Panevezys enterprise total LTT 25 million litas and in other needs – LTT 7 million. Panevezio Stiklas half-year product and service sales posted LTT 40.18 million litas, with total turnover constituting LTT 45 million litas. Though the factory earned operating profits this year, the old debts upset this result transforming it into LTT 10.6 million litas losses.