The Norwegian offshore supplier Havila Shipping agreed the restructuring plan with largest bank lenders and shareholders. The company will replace about 3.2 billion NOK (390 million USD) of debt maturities in the period 2017-2019 with around 67 million NOK (8.5 million USD) of minimum fixed amortization. Also the net interest bearing debt will be reduced by approximately 1.6 billion NOK (195 million USD) through financial injection of new risk capital, discounted debt repurchase, sale of non-core vessels and conversion of debt to equity. The restructuring plan will ensure operations of the company until 2020, enduring to the severe market downturn and keeping the core fleet and operation activities.
“The restructuring plan will enable Havila Shipping to endure the severe market downturn and to continue safe operations of its fleet to the benefit of all stakeholders”, said Havila Shipping in official statement.
The restructuring plan of Havila Shipping is subject to approval from the bondholders in the Company’s bond loans HAVI 04, HAVI 06/07 and HAVI 08. The Board of Directors of the company summons a bondholders’ meetings on 23 November 2016, where will be discussed the restructuring. The company is maintaining close dialog with the bondholders, but no pre-approval from any of the bondholders exists.
The restructuring plan of Havila Shipping plan includes 118.2 million NOK (14.3 million USD) of new equity and 46.2 million NOK (5.7 million USD) of convertible shareholder loan to be provided from current main shareholder Havila Holding, with estimated subscription price of 0.125 NOK per share. Also the secured creditors will convert to new shares approximately 135 million NOK (16.5 million USD) of accrued interest at estimated price of 0.24 NOK per share. The present shareholds will lose around 2.5% from the shares and a repair issue of 30 million NOK will be offered towards existing shareholders (excluding Havila Holding) at 0.125 NOK per share.
According to the restructuring plan, all the unsecured debt, which is totaling 950 million NOK (115.6 million USD) will be offered at 15% of outstanding principal amount and 500 million warrants which may be exercised for shares in a period of 5 years at 0.156 NOK per share in cash.
Havila Shipping is Norwegian provider of maritime support functions for international offshore oil and gas production. The company operate 22 vessels, including platform supply vessel, anchor handling tug supply vessel, rescue- and recovery vessel and subsea construction vessels. The main market for the sompany’s ships is the North Sea and Asia Pacific region.