Havila Shipping gains bondholder approval for restructuring

Norway-based Havila Shipping ASA appears to have got its creditors to blink first, getting its bondholders to agree to a restructuring. On Friday a bankruptcy at 15.00 Monday had looked more likely. Havila had received notice that bondholders of HAVI08 did not support the proposal for restructuring and that secured bank lenders collectively intended to accelerate relevant facilities, proceeding with formal acceleration notices “imminently”. They have now backed down from that threat.

Under the terms of the restructuring, Havila looks set to survive at least through to November 2020. About NOK3.2bn of debt maturities in the period 2017 to 2019 will be replaced. The net interest bearing debt will be reduced by approximately NOK1.6bn via the injection of new risk capital, a sale of non-core vessels, discounted debt repurchase and a conversion of debt to equity.