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FESCO says work continues despite bankruptcy claim

RUSSIA's private shipping company FESCO says its does not expect the bankruptcy petition filed against the company by Russian management company Kapital will have any impact on the company's work.

The lawsuit against the shipping company was filed in the Moscow Arbitration Court on February 27 by Kapital, which holds bonds worth RUB306.6 million (US$5.2 million). The Russian investment group acquired the bonds in 2013, which are due to mature this year.

FESCO said in an official statement that it remains engaged in a constant dialogue with its creditors, including certain major RUB bondholders, which include Kapital.

The company believes the court process initiated by Kapital does not preclude the possibility of reaching an amicable settlement with its RUB bondholders, including Kapital.

"FESCO does not expect that the lawsuit on bankruptcy will have a negative impact on its operations and interaction with partners, including suppliers and customers.

"Operationally, FESCO continues to function as normal, fulfilling all of its obligations", the official statement added.

The operations of FESCO, including payment related to customers and subcontracts, will not be interrupted or affected by the bankruptcy claim. All vessels of the company are operating as usual.

FESCO is one of the leading public transportation and logistics companies in Russia with operations in ports, rail, integrated logistics and shipping business. The shipping group is the leader of container transportation through the Russian Far East via international sea container lines to/from Asian countries, domestic sea container lines and by rail. FESCO is the leading port container operator in the Far East region, according to Maritime Herald.