Havila Shipping lacks holder backing for proposed restructuring plan; Thursday meeting pulled

By Susanna Moon

Chicago, Nov. 23 – Havila Shipping ASA failed to garner bondholder support at a meeting Wednesday for the financial overhaul needed to avert bankruptcy.

“The issuer continues maintaining a close dialogue with the banks and the secured and unsecured bondholders, with the intention to be able to submit a revised proposal,” according to a company update.

Havila said it continues to run its business, including operation of vessels to all customers and payment of trade creditors.

As announced Nov. 10, a group of bondholders rejected the company’s proposed restructuring plan and countered with a proposal of its own.

Havila’s bondholders representing a minority stake, or at least one-tenth, in the issuer's unsecured bond loan then called for a bondholders' meeting to be held on Nov. 24.

That meeting set for Thursday has now been canceled, according to a separate update on Wednesday.

The company then responded on Nov. 14 that the likely alternative to the unsecured bondholder rejection of its proposed restructuring would be bankruptcy.

The company previously said its restructuring plan is supported by secured and unsecured banks and, likewise, Havila’s majority shareholder. In addition, the banks confirmed a substantial contribution as a part of the restructuring.

Instead of the conversion of all unsecured debt to equity as proposed by the Havila plan, the company said the bondholder group seeks an additional/partial cash payment or that a part of the unsecured debt be maintained.

Because the bondholder plan represents less than 10% of the company’s total debt, Havila said it believes the bondholder plan will not obtain the support of the banks and, therefore, will fail.

Havila provides supply services to the offshore oil and natural gas industry. It is based in Fosnavag, Norway.

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