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Latvian Shipping News

19 Dec 2022

Shipbuilding: Can I Have A Refund?

© Dmitry / Adobe Stock

In Havila Kystruten AS v Abarca Compania de Seguros AS,¹ in which Watson Farley & Williams LLP represented the successful Norwegian shipowner, an English court has provided helpful and very detailed guidance on a number of issues relating to the parties’ rights to terminate shipbuilding contracts as well as the nature and scope of refund guarantees.BackgroundRefund guarantees are the lifeblood of shipbuilding, providing invaluable security to owners/buyers who must usually cash fund a significant proportion of the price of newbuildings during the construction phase (usually at least 40%)…

18 Jun 2017

Latvian Shipping Company Adds 25th Tanker to its Fleet

The JSC Latvian Shipping Company subsidiary LSC Shipmanagement (LSCSM) supplemented the fleet under its full technical management with a newbuilding “Elandra Falcon”, which is the 25th tanker managed by LSCSM. The new tanker is intended for transportation of oil products. Her total length is 268.25 meters and deadweight – 157’000  tons. “We are delighted that LSCSM is able to expand the fleet under its technical management, which is a sign of quality that attests to the professionalism and skills of our crews and ship management team. This is the 25th ship under the technical management of LSC SM, and we see that we can grow it even more," said Robert Kirkup, the Chairman of the Board of JSC Latvian Shipping Company.

18 Dec 2015

Latvian Shipping's IPO in 2016

Marine petroleum transportation specialist Latvian Shipping Company (LSC) hopes to raise EUR 80 million via an initial public offering (IPO) on the Riga Stock Exchange in the first half of 2016. The Supervisory Council of LSC has supported the Management Board’s proposal to raise the equity capital in the IPO. LSC is looking to double its share capital and raise equity of EUR 80mn in order to pay down existing debts due in 2016 and 2017. The LSC Management Board believes a share capital raising would achieve this and place the company in a stronger position. The IPO is subject to approval by a shareholders meeting planned for April 2016. A successful float would be the first on the Latvian bourse in over a decade.

03 Jun 2013

Tankship Owner Turns First Profit Since 2008

Latvian Shipping Company (LSC) owners of 19 medium-size tankships reports a profit in Q1 2013. LSC and its affiliates made a profit of US$ 77,000 despite an impairment charge of US$ 1.7-million against the decrease of the fleet value. Though in absolute terms the profit is merely symbolic, it is nevertheless a sign of major progress; it is the first time since 2008 when the LSC Group reports a positive financial result. Just to compare – the LSC Group closed Q1 of 2012 with a loss of US$ 17.77-million. Simon Blaydes, Chairman of LSC Management Board, explains: "Latvian Shipping Company is prudently optimistic about the prospects of the petroleum product tanker market, because charter rates have been increasing progressively.

11 Dec 2001

Lawrence Graham Completes LATCO Loans

London law firm, Lawrence Graham has advised the Latvian Shipping Company on a complex multi-bank loan scheme to finance its recently completed purchase of three 68,000 dwt product tankers. The $125 million deal, together with $90 million of associated acquisition finance, involved separate loan agreements with banks in Hamburg, Stockholm, Riga and Rotterdam. number of banks through separate loans rather than obtain one syndicated loan. Latvian Shipping Company agreed to pay $41.6 million for each of the sister vessels and Lawrence Graham advised them on three separate purchases and loan facilities of $30 million each. The purchases and financings involved coordinating legal advice from many jurisdictions around the world…

29 Mar 2000

Latvian Privatization Saga Continues

Stymied in its efforts to extract what it deems a reasonable market value, the Latvian government will decide on April 4 whether to proceed with the privatization of Latvian Shipping after a third tender to sell the firm failed. The government received only one bid for a 44 percent stake in the company, which was subsequently ruled invalid because the unnamed bidder failed to present all necessary documents and pay a $3.9 million security deposit and a 2,000 lat auction fee. The bidding deadline was March 27. "The government will evaluate three variants on further action. One variant is to stop Latvian Shipping's privatization, the second is to extend the application deadline and the third is to set a repeated tender," said Romans Melniks, spokesman for the economy minister.

01 Dec 2000

Latvian Shipping Given OK To Sell Refrigeration Fleet

The Latvian privatization agency cleared Latvian Shipping to sell part of its loss-making refrigerator fleet to concentrate on its core tanker business, Reuters reported. The agency gave the go ahead to sell seven Kursk-type refrigerator vessels that are unable to handle containers and had said that the funds raised must be reinvested. Shipping, currently in the final stages of privatization, has said the total balance sheet value of the ships is $40 million. Shipping's strategy -- if and when an investor arrives -- is to strip all non-core business away by selling most of the refrigerators, as well as dry-cargo and gas vessels. The firm operates a fleet of 49 ships -- 34 tankers…

01 Feb 2001

Shipping Company Privatization Draws Bidders

Latvia's privatization agency said on Thursday several potential bidders were interested in a 68 percent stake in Latvian Shipping. The deadline to submit such expressions of interest is February 1 and this tender is the fourth attempt to sell the controlling stake in the firm after previous attempts failed due to little interest and political bickering. "We have several applications... more than one, from several continents," privatization agency head Janis Naglis told a news conference. Economy Minister Aigars Kalvitis said participation of international advisers and surveillance from local NGOs would secure transparency in the process. The 136 million state-held shares are expected to be sold and paid for by June.

31 Jan 2001

Fourth Time A Charm For Latvian Shipping?

After five years of failed tenders and political turmoil, Latvia is once again bringing Latvian Shipping to the block in the hope of finally selling the company that has unseated governments and marred the country's image. Investors looking at the potential privatization of the 68 percent stake the state is offering in the world's 19th-largest shipping firm in tonnage terms, have until 10:00 GMT on February 1 to express interest in taking part in the company's fourth sell-off tender. A final auction is expected in May. As with previous attempts to privatize the company, the latest effort has been surrounded by political bickering. Despite the dismal backdrop for the sale, however, the government says this time it is convinced it will succeed.

14 Feb 2001

Three Bidders Approved To Buy Shipping Company

Latvian Economy Minister Aigars Kalvitis said the cabinet had approved three bidders to buy a 68 percent stake in Latvian Shipping. "Six companies had applied and we approved the 'long-list' of three companies," Kalvitis said. He did not name the bidders. The three approved companies will have to place their bids in early April. The cabinet will evaluate the bids and shortlist the companies, which will carry out due diligence of Latvian Shipping. The cabinet will also name the minimum price for the majority stake in the shipper. The auction is expected to take place in May. – (Reuters)

05 Apr 2001

Bids Received for Latvian Shipping Privatization

The Latvian Privatization Agency said on Thursday it had received two bids for the government's 68 percent stake in Latvian Shipping, one of the world's largest oil products transporters. "We have two contenders who expressed interest in participating in the Latvian Shipping privatization and have made their bids," said the economy minister, who heads the privatization agency's council. The agency did not name the bidders and the government has not provided estimates on the size of the sale. The Latvian Cabinet is expected to set the minimum price for the auction on April 10, while the auction itself will take place in May. The government has been trying to privatize the company since 1996, but its previous attempts have failed due to a lack of interest and political bickering.

16 Dec 2004

Northrop Grumman to Supply Navigation Systems for New Tankers

Northrop Grumman Corporation has received orders to supply a complete package of electronic navigation equipment for ten new tankers being built for the Latvian Shipping Company (LASCO). The orders were awarded to Northrop Grumman’s Sperry Marine business unit. Terms of the agreement were not disclosed. The 51,800-dwt, double-hull tankers, which will be equipped to carry either oil products or chemicals, are being built for LASCO’s Crown Navigation subsidiary at the 3.Maj shipyard in Rijeka, Croatia. Deliveries are scheduled for 2006-2008. Each ship is being fitted with a complete integrated bridge system (IBS), featuring Sperry Marine’s multi-station Voyage Management System, which incorporates an electronic chart display and information system.

16 Dec 2004

Sperry Nav Systems for LASCO Tankers

Northrop Grumman Corporation received orders to supply a complete package of electronic navigation equipment for 10 new tankers being built for the Latvian Shipping Company (LASCO). The orders were awarded to Northrop Grumman’s Sperry Marine business unit. The 51,800-dwt, double-hull tankers, which will be equipped to carry either oil products or chemicals, are being built for LASCO’s Crown Navigation subsidiary at the 3.Maj shipyard in Rijeka, Croatia. Deliveries are scheduled for 2006-2008. Each ship is being fitted with a complete integrated bridge system (IBS), featuring Sperry Marine’s multi-station Voyage Management System, which incorporates an electronic chart display and information system.

10 Jan 2005

Electronic Notes

Petroleos Mexicanos (PEMEX) and Norcontrol IT entered into a three-year maintenance contract that covers the offshore VTMIS system at the Bay of Campeche oilfield located in the Gulf of Mexico off the Yucatan Peninsula. The Bay of Campeche is the largest oilfield in Mexico and the world's largest offshore oil development project. The VTMIS system installed by Norcontrol IT consists of two control centers and seven radar sites, all of which are covered by the maintenance contract. A large capacity, flexible and reliable VTMIS system is required at the Bay of Campeche for several reasons. The coverage area contains between 200-300 vessels per day, all of which have to be monitored to protect the pipelines: Especially important as the bay is only 40-50 m deep in most areas.

09 Oct 2002

Settlement Reached in Stocznia/Latreefers Dispute

Shipping Company ("Latco"). The settlement, the terms of which remain confidential, brings to an end a long-running legal battle which has been fought out in the English and French courts over a period of years. The Latvian interests were represented throughout by Lawrence Graham. Ince & Co represented the Polish yard. The dispute centered on the shipyard's claimed entitlement to damages arising from the failure of Latreefers, a wholly owned subsidiary of the Latvian Shipping Company, to meet contractual payments under a $170 million, six reefership order placed with the Gdansk yard in 1992 and subsequently cancelled. Stocznia Gdanska arrested in France several vessels belonging to Latco or subsidiary companies in an attempt to enforce its claims against Latvian Shipping Company.

09 Oct 2002

Settlement reached in Stocznia/Latreefers dispute

Shipping Company ("Latco"). fought out in the English and French courts over a period of years. Latvian interests were represented throughout by Lawrence Graham. Co represented the Polish yard. cancelled. Shipping Company. and the "TAGANROGA", have now been released.

01 Oct 1999

Latvian Shipping To Update Aging Fleet

Latvian Shipping has started a renewal of its aging fleet by placing an order for six new tankers, according to the company's president. Andris Klavinsh said the firm had signed a letter of intent with Korean shipbuilders to construct tankers worth between $168 million to $210 million and is awaiting a go-ahead from the Latvian privatization agency. He declined to name the Korean shipbuilders involved. Shipping has had problems with fleet renewal due to its stalled privatization. It now operates a total of 60 ships, including 36 tankers, two LPG tankers and 19 reefer vessels. "Latvian Shipping's tanker fleet is older than that of our competitors and if we don't invest in fleet renewal we could lose market share," Klavinsh said.

16 May 2001

Latvian Shipping Buy Rules May Be Eased

Latvia may drop certain key conditions in a fresh attempt to privatize Latvian Shipping but could keep the offered stake at 68 percent. Latvia's cabinet officially admitted defeat on Tuesday in its fourth attempt to sell the sea cargo firm and ordered the economy ministry to draw up a new tender for its privatization. "The variant offered could contain giving up on the strategic investor, but I do not see any arguments why we should give up the current stake (to be offered)," privatization agency head Janis Naglis said. Naglis said giving up on a strategic investor meant scrapping several key requirements, including future investments, keeping the firm in the shipping business and limits on reselling it. Without these requirements, the potential range of bidders could widen.

15 May 2001

Will Fourth Time Be A Charm?

Latvia's government officially admitted defeat on Tuesday in its fourth attempt to sell sea cargo firm Latvian Shipping, ordering the economy ministry to draw up a new tender to sell the firm. "The government decided to stop the Latvian Shipping privatization process based on the current rules and asked the economy ministry to prepare new guidelines within two weeks in order to continue," Economy Minister Aigars Kalvitis said. Privatization officials were sent back to the drawing board last month after the two finalists selected by the government failed to submit a bid bond to take part in an auction for a 68 percent stake, which had been set for May 11.

17 Aug 1999

Latvian Shipping Shares To Be Auctioned

Latvia’s government has announced a plan to sell 44 percent of Latvian Shipping, which could take place by the end of the year. According to reports, 34 percent of the firm will be offered in a first-round cash auction, with the winner of that bid to get another 10 percent in a separate transaction for the same tender price.

25 Aug 1999

LATVIAN SHIPPING SELL-OFF RULES COMING SOON

The elongated saga to sell the world's 19th largest shipping firm (in terms of tonnage) will seemingly take another step towards the exit door next week, as final sell-off rules for the 100-percent-owned company are expected to be approved next week. The process has been plagued by delays, and the latest announcement was met with skepticism by many industry insiders. Latvian official still claim, however, that the plan to sell 44 percent of the shipping could happen by the end of the year. The Agency has already sent out preliminary guidelines passed by the cabinet to 15 potential investors, including shippers and investment funds in Scandinavia, U.K. and the U.S.

27 Aug 1999

Latvian Shipping Sell-Off Rules Expected This Week

The ongoing saga to partially privatize the world's 19th largest shipping company took another turn last week, as officials with the Latvian Privatization agency confirmed that final selloff rules for 100-percent state-owned Latvian Shipping are expected to be approved this week. But the process to sell the company has been marked with so much turmoil that the news did little to encourage potential investors. Latvia's government officials, however, said the sale could take place by the end of the year, leaving the final rules to be settled by the agency. The Agency has already sent out preliminary guidelines passed by the cabinet to 15 potential investors, including shippers and investment funds in Scandinavia, U.K. and the U.S., Privatization Agency head Janis Naglis said.

22 Sep 1999

Mitsubishi Eyes Latvian Shipping

Latvia's privatization agency said that Japan's Mitsubishi group had expressed interest in the privatization of Latvian Shipping. The agency has set the minimum share price for a 34 percent of Shipping's 200 million shares to be sold at 0.51 lats, although a firm date for the auction has not yet been scheduled. The winning bidder in the auction will get another 10 percent in a separate transaction for the same price. Most of the remaining shares are to be sold in offerings for privatization vouchers and cash by September 1, 2000.