Havila will keep going, despite $162m write-down and failed bail-out plan
Norway’s Havila Shipping says it will continue “ordinary operations” and will honour its existing contracts, despite massive impairment charges and investors’ rejection of its restructuring plan.
“The board of directors has today decided that the company shall continue its operations. The decision entails that the company continues its negotiations with its financial creditors with an aim to reach an agreement that that will enable the company to come through the current market challenges,” a statement from the Oslo-listed offshore service vessel operator said today.
The board said it expects to write-down vessel values and accrued maintenance values by NOK 1,388m ($162m) in total when it publishes its Q4 2015 financial results on February 29.
Separately, Roger Granheim has given notice to Havila’s board that he intends to step down as a company director. Havila said Granheim “wants to avoid any discussions or doubt about potential future conflict of interest”.
On Tuesday, Havila’s revised restructuring proposal failed to receive support from the required 66% majority of holders of its unsecured bonds, leaving the company in what it called a “challenging position”.
The company has responded by halting payments of interest and amortisation to all of its financial creditors, a plan that has been approved by its banks.
