Havila escapes bankruptcy after bondholders support restructuring plan

Norwegian offshore vessel operator Havila Shipping has received support for its restructuring proposal, regarded as the only viable alternative to bankruptcy. 

The vessel owner said in an Oslo Stock Exchange filing on Monday the company received support from more than 2/3 of the outstanding bonds across all bond issues. The company added it will proceed with summons for bondholders’ meetings.

To remind, the company’s bondholders last Wednesday did not support the previously restructuring proposal which then prompted a notice from Havila’s secured bank lenders stating their intention to accelerate the relevant facilities and proceed with formal acceleration notices imminently.

Following discussions with representatives of the secured bank lenders on last Thursday, the company’s board concluded that the proposed restructuring proposal was the only viable alternative to a bankruptcy and therefore set a deadline for obtaining support from all stakeholders for the company’s restructuring proposal at 15:00 CET on Monday, November 28, 2016.

The restructuring plan is supposed to enable Havila to endure the severe market downturn, continue operations of its fleet, and provide it with a financial runway until November 2020.

Offshore Energy Today Staff