Havila will go bankrupt on Monday unless restructuring approved

Troubled Norwegian offshore firm Havila Shipping has told bondholders that unless they agree to its restructuring by Monday it will then be forced to seek bankruptcy, after it received a notice to accelerate from its secured bank lenders.

Thus far, bondholders have rejected measures proposed by the Havila board. Havila will know its fate by 3pm on Monday.

The restructuring plan gives Havila breathing room through to November 2020, replacing approximately NOK3.2bn of debt maturities in the period 2017-2019 with around NOK67m of minimum fixed amortization.

Furthermore, the net interest bearing debt will be reduced by approximately NOK1.6bn through injection of new risk capital, sale of non-core vessels, discounted debt repurchase and conversion of debt to equity.

Havila is one of many financially struggling Norwegian OSV companies – a sector that is contracting fast via consolidation and players exiting the market.


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.
Back to top button