Dispute Arises Over Havila Shipping’s Restructuring Agreement

Norwegian offshore supply vessel (OSV) owner and operator, Havila Shipping, is currently embroiled in a dispute with three banks over allegations of default. The dispute stems from the restructuring agreement that was put in place as part of Havila’s financial restructuring plan.

Under the terms of the restructuring deal, three banks and bondholders were set to have their debts settled by the end of 2024. Additionally, an extension of the agreement was granted for two vessels currently in operation and four vessels that had been sold.

To facilitate the restructuring, a cash settlement of NOK 499.6 million was refinanced through a bond issue. Furthermore, a non-interest-bearing debt of NOK 522.3 million was converted into shares as part of the agreement.

The three banks involved in the restructuring have agreed to finance the PSV vessel Havila Foresight and the subsea vessel Havila Harmony. The total interest-bearing debt for these vessels amounts to NOK 151.5 million, while the non-interest-bearing debt for these vessels and the four sold vessels totals NOK 616.3 million.

As per the terms of the restructuring agreement, the two vessels will continue servicing the debt until 2025. The remaining interest-bearing debt will be refinanced and settled in cash by the end of 2025, while the outstanding non-interest-bearing debt will be converted into shares.

However, a recent development has seen the three banks accusing Havila of violating the restructuring agreement by refinancing through bond loans. The banks claim that this action goes against the agreement, which states that lenders who opted for settlement by the end of 2024 should be repaid.

In response, Havila has vehemently denied any default and disputes the banks’ interpretation of the restructuring agreement. The company has indicated that it will seek legal clarification on the matter if necessary.