Norwegian offshore vessel operator Havila Shipping is facing bankruptcy unless its bondholders vote for a restructuring plan with a deadline set for Monday, November 28.
The company’s bondholders on Wednesday did not support the proposal for restructuring of the company suggested on November 9. The restructuring plan would enable Havila to endure the severe market downturn and to continue operations of its fleet.
The plan aims to provide Havila Shipping with a financial runway until November 2020, replacing approx. NOK 3.2 bn of debt maturities in the period 2017-2019 with around NOK 67 million of minimum fixed amortization. Furthermore, the net interest bearing debt would be reduced by approx. NOK 1.6 bn through injection of new risk capital, sale of non-core vessels, discounted debt repurchase and conversion of debt to equity.
The company said on Thursday it has received a notice from its secured bank lenders collectively that they intend to accelerate the relevant facilities and proceed with formal acceleration notices imminently.
Following discussions with representatives of the secured bank lenders on Thursday, the company’s board has concluded that the proposed restructuring proposal is the only viable alternative to a bankruptcy.
The proposal to the company’s bondholders would in effect be identical to that proposed on November 9. Consequently, the board has set a deadline by 15:00 CET on Monday, November 28 at the latest to obtain the required support from all stakeholders.
Earlier this week, the shipping company revealed its decision to lay up two PSVs, one anchor handler and, as a consequence, lay off around 70 employees.
Offshore Energy Today Staff