Norwegian shipbuilding group Havyard says that during this quarter it expects to be in breach of new covenants as negotiated with senior lenders and bondholders in July.
The company says the breach is mainly due to major losses on two prototype projects at Havyard Ship Technology’s shipyard in Leirvik, which are suffering from delays in the completion of vessels.
“The overall effect is that the company will be in breach of the new covenants as of Q4 2019 in terms of requirements for equity and working capital, and the results for Q3 2019 will therefore be lower than previously expected,” the company said.
Havyard has initiated dialogue with lenders to minimise the effects of the breaches, and Fearnely Securities has been engaged to assist in implementing a long-term and sustainable capital structure.
