Creditors dismiss Havila’s bailout plans

Creditors dismiss Havila’s bailout plans

Creditors failed to agree to Oslo-listed Havila Shipping’s revised restructuring plans, leaving the OSV firm on the brink.

“Despite substantial support from bondholders, the revised restructuring proposal was not supported by the required 2/3 majority of holders of the unsecured bonds,” Havila said in a release to the Oslo Bors.

Havila said it remains in a “challenging position” and is now in touch with creditors again to reach a standstill agreement. Havila has decided to halt payments of interest and amortisation to all of its finance providers.

Havila’s amended plan, outlined on Splash last Friday, would have seen the company spend up to NOK 275m ($32m) in buying back its bonds in a reverse auction, at a price of up to 30% of par value per bond.

In January, Havila Shipping entered into a master agreement with its secured and unsecured bank lenders to reduce loan amortisation for three years, postpone maturities and replace all existing covenants, subject to bondholder approval.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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