Havila Shipping avoided bankruptcy

Havila ShippingThe Norwegian offshore company Havila Shipping avoided bankruptcy after agree with bondholders on debt restructuring. The worst scenario was avoided yesterday in very last moment, after previously the bondholders rejected the proposals by the company’s Board of Directors. The debt restructuring will give a fresh breath and time for Havila Shipping to improve its finance performance until November 2020. The agreement between Norwegian offshore provider and its bondholders replaces approximately 3.2 billion NOK debt maturities in the period 2017-2019 with around 67 million NOK of minimum fixed amortization. Additionally, the interest bearing debt will be reduced by 1.6 billion NOK through an injection of new risk capital, financed through sale of non-core vessels, discounted debt repurchase and conversion of debt to equity.

The agreement was approved by more than two thirds of the outstanding bonds across all bond issues. This made the agreement legal and allowed the company to continue operations until 2020 at least. During this time the Board of Directors promised to optimize the operations and improve the company finance sheet.

Havila Shipping ASA is Norwegian offshore company, which operates 22 vessels, including platform supply vessel, anchor handling tug supply vessel, rescue- and recovery vessel and subsea construction vessel. The company’s business concept is to provide maritime support functions for international offshore oil and gas production, to own and run the assets regarded as necessary or desirable for this, and to provide associated services. The main markets of Havila Shipping are the North Sea and Asia Pacific region.