Panevezio Stiklas to receive government aid

On 5 June the Lithuanian government decided to help glass producer Panevezio Stiklas (Panevezys Glass), in the process of restructuring, in an attempt to save the troubled company from ruin and recove…

On 5 June the Lithuanian government decided to help glass producer Panevezio Stiklas (Panevezys Glass), in the process of restructuring, in an attempt to save the troubled company from ruin and recover at least a part of state investments. Under the rescue plan, the Finance Ministry will waive LTT 30.9 million worth of claims on Panevezio Stiklas and capitalize a portion of the company“s debt by acquisition of newly issued shares with a face value of LTT 1.0 for a total of LTT 33.3 million in 2005, the last year of the company“s restructuring plan. That would cover LTT 64.2 million of Panevezio Stiklas“ total debt owed to the Finance Ministry. The deadline for the repayment of the outstanding debt, amounting to LTT 27.5 million, will be moved to the year 2014. The government“s decision will take effect after a court approves Panevezio Stiklas“ draft restructuring plan, which calls for cutting the company“s workforce to 550. As of early 2002, Panevezio Stiklas owed a total of LTT 135.36 million to its creditors, of which its outstanding debt to the Finance Ministry stood at LTT 91.68 million, the amount the company borrowed from the government to finance a modernization project. Polish glass production company Warta acquired 99.13% of shares in Panevezio Stiklas in 1998.