Havila Shipping ASA Clarifies Debt Settlement Strategy
Havila Shipping ASA Clarifies Debt Settlement Strategy
Detailed consideration has been given to the financial restructuring surrounding Havila Shipping ASA and its approach toward managing its debt. Recent communications indicated the company had a stock exchange announcement highlighting crucial aspects of the debt management plan and recent performance reports.
Options Ahead for Lenders
The lenders of Havila Shipping ASA were recently informed of their options regarding the company's debt arrangement. They had until the deadline to decide on:
- Settlement at the year's end.
- Extending the current agreement for an additional year.
The exact details regarding the extent of debt that will either be settled or converted into shares will become clearer following the third quarter financial disclosures.
Debt Estimates Moving Forward
Preliminary estimates suggest that by the year's end, interest-bearing debt could reach NOK 651 million, reflecting a substantial amount influenced by recent upward adjustments. Notably, lenders backing up NOK 500 million of that debt have expressed a desire for settlement by year's end, connecting this debt to specific vessels within the company.
Impacted Vessels
The vessels tied to the aforementioned debt include:
- Havila Fanø
- Havila Clipper
- Havila Borg
- Havila Subsea
In addition to these figures, non-interest-bearing debt associated with lenders preferring to convert their holdings into shares was estimated at NOK 522 million. This represents about 21.5% of the total shares of the company following a complete debt conversion process.
Implications for Bondholders
Insights gathered indicate that holders of bonds related to specific vessels will witness share allocations, with projections stating bondholders in Havi04 may receive approximately 0.8% of Havila Shipping ASA's shares, and Havi07 bondholders about 7.9%. Following complete debt conversion, other lenders may garner roughly 12.8% of the available shares.
Restructured Debt Plans
Lenders, accounting for NOK 151 million of interest-bearing debt, have agreed to extend the restructuring agreement for an additional year. This involves adjustments on previously sold vessels, consequently impacting future ownership stakes linked to interest-bearing debt for both current and previously sold vessels.
- Havila Foresight
- Havila Harmony
The forecast indicates that non-interest-bearing debt concerning these and other vessels amounts to about MNOK 617. If shares were to be issued by year-end, lenders linked to these vessels would hold around 25.5% of the company's equity.
Future Ownership Projections
As the agreement has extended to the end of the following year, any conversion of shares is thus postponed, pushing the timeline for structural adjustments until the later date. In this vein, Havila Holding AS aims to maintain its majority stake, converting a portion of liquidity loans into shares.
The extension of the conversion agreement means that lenders converting debt at the end of the year may hold around 44.8% of the company's shares until the final conversion occurs at the end of the next year. During this transitional period, current shareholders, excluding Havila Holding, will reportedly own approximately 4.2% of the company's shares.
Delay in Repair Issue
Due to the extended agreement, plans for subsequent structural repairs are now anticipated to be pushed back until 2026. It should be understood that all ownership percentages discussed are drawn from preliminary estimates subject to further adjustments.
Fleet Refinancing and Contacts
In addition to these developments, the company has entered into a term sheet regarding the refinancing of its fleet, securing a strategic path forward in its financial journey.
For further inquiries, please contact:
Chief Executive Officer, Njål Sævik, +47 909 35 722
Chief Financial Officer, Arne Johan Dale, +47 909 87 706
Frequently Asked Questions
What refinancing strategies are being employed by Havila Shipping ASA?
Havila Shipping ASA is addressing its debt through a structured refinancing plan while engaging with lenders to negotiate terms that suit both parties.
How are share allocations determined for bondholders?
The share allocations for bondholders are based on preliminary estimates of converted debt, with specific percentages assigned per bond group.
What vessels are primarily linked to the company’s debt?
The vessels linked to Havila Shipping ASA’s debt include Havila Fanø, Havila Clipper, Havila Borg, and Havila Subsea.
What is the significance of extending the debt agreement?
Extending the debt agreement allows Havila Shipping ASA additional time to restructure its financial obligations while stabilizing its operational framework.
How does the company plan to maintain its ownership structure?
Havila Holding AS plans to convert part of its liquidity loans into shares, ensuring its ownership stake remains at 50.96% during the restructuring period.
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