Savonlinna city supports LP Management amid financial difficulties affecting steamboat operations

The city of Savonlinna made an unusual announcement on Monday on behalf of a private steamboat company, LP Management, which faces significant challenges. According to the city’s statement, these issues have escalated into national negative media coverage that could affect the profitability and sustainability of cruise operations.

LP Management, which operates the historical steamboats Punkaharju, Saaristo, Rauha, and Paul Wahl, owes almost €20,000 to the city, in addition to late fees and interest. This past summer, traditional steamboats became a hot topic in Savonlinna, particularly due to driving bans, unauthorized cruises during such periods, and an ongoing police investigation.

In its statement, Savonlinna expressed hope that the current tourist season would continue positively for steamboat cruises. Mayor Janne Laine emphasized the importance of supporting the company and ensuring its continued operations in the area. The CEO of LP Management previously indicated that if conditions do not improve, the boats could be sold after the summer season.

The city council was set to address LP Management’s restructuring application on Monday, but the discussion was postponed until next week. Laine clarified that the city purposely issued the statement on a different day from the council meeting to avoid confusion.

LP Management has faced financial challenges, including overdue payments dating back to July of last year for dock fees, electricity bills, and inspections. Mayor Laine stressed that steamboats are vital to Savonlinna’s tourism appeal, comparing their significance to the region’s iconic Olavinlinna castle.

City financial officials expressed reservations about delaying the collection of dues, arguing against establishing new payment plans if previous ones failed. They also noted that the company received a €15,000 de minimis grant in December to support its operations.