Based on the facts presented, the High Court in London concluded that Latvian Shipping Company (LSC) has a case of sufficient strength against Lembergs. Nevertheless, the case was dismissed by the Court of Appeal on a technicality – an issue of jurisdiction.

LSC is appealing this decision in the Supreme Court on jurisdiction. The Worldwide Freezing Order over the assets of Mr Lembergs, including those held by his children, remains in force and LSC have applied for it to continue to do so until all of these issues are resolved.

In any event, the Court of Appeal decision only applies to claims brought direct by the Claimants. Mr Lembergs remains a defendant in the London proceeding in relations to claims brought against him by the Corporate Defendants.  In that context, Mr Lembergs has already submitted to the jurisdiction of the English Courts, and no right of appeal is available to him. The Corporate Defendants have independently obtained a Worldwide Freezing Order over assets of Mr Lembergs on the basis of their own claims.

The Corporate Defendants claim that Mr Lembergs, and the other individuals that they have identified as being involved in the conspiracy to defraud LSC, are liable to reimburse them for the full amount of any judgment against them. The liability of the Corporate Defendants, the group of companies through which the fraud was committed, has already been established.

Thus Lembergs will continue to be a defendant in LSC’s claim in London.  On current evidence, Aivars Lembergs, his family and associates appear to have been among the main beneficiaries of activities where the financial assets were lost through fraudulent charter schemes and other activities which have removed cash and other assets from Latvian Shipping and its shareholders, who include the Latvian State.

Latvian Shipping Company wants to recover its stolen financial assets which may amount to USD 135 million.

About JSC “Latvijas kuģniecība” (Latvian Shipping Company)

In the medium-sized and handy tankers categories JSC „Latvijas kuģniecība” (NASDAQ OMX RIGA: LSC1R)  is among the leading ship owners in the world, and in terms of transport volumes of petroleum products  it is also in a leading position among similar companies in Northern Europe. It owns 19 modern ships, employing more than 700 professional and highly qualified seamen from Latvia. The total carrying capacity of the LK fleet is 957 974 DWT and the average age of the fleet is 6.3 years. All ships have received ISM (International Safety Management) certificates.

Ilze Nagla
Public Relations Manager
JSC “Latvijas kuģniecība”
Tel.: +371-29267454, +371-67715914
E-mail: ilze.nagla@vnafta.lv

Latvian Shipping Company http://www.lk.lv/en/

LSC Shipmanagement  www.lk.lv/en/shipmanagement