Havila Shipping ASA: Allegation from certain banks of default of the restructuring agreement

Reference is made to the stock exchange announcement 1 October 2024, informing that three bank lenders, and the bondholders in two bond loans had decided to have their debt settled at the end of 2024 in accordance with the terms of the restructuring agreement.

It was also reported that three banks chose to extend the restructuring agreement by one year related to two vessels in operation and four sold vessels.

Reference is also made to the stock exchange announcement of 30 December 2024, where settlement of the debt related to Havila Borg, Havila Clipper, Havila Fanř and Havila Subsea was announced.

Cash settlement of NOK 499.6 million was refinanced by a bond issue and non-interest-bearing debt of NOK 522.3 million was converted into shares.

Three banks that extended the restructuring agreement are financing the PSV vessel Havila Foresight and the subsea vessel Havila Harmony.

Total interest-bearing debt related to these vessels amounts to NOK 151.5 million and non-interest-bearing debt related to these vessels, as well as four sold vessels, amounts to NOK 616.3 million.

According to the restructuring agreement, the vessels in question will service this debt through 2025 and the remaining interest-bearing debt will be refinanced and settled in cash at the end of 2025 and the remaining non-interest-bearing debt will be converted into shares.

The company has received a letter on behalf of the three banks that extended the restructuring agreement, claiming that the refinancing and issue of bond loan, which was used to redeem the debt of lenders who chose settlement at the end of 2024 in accordance with the agreement, is in breach of the restructuring agreement.

It is also alleged that certain other circumstances constitute a breach of the restructuring agreement. The remaining lenders claim that they will be entitled to declare default on the outstanding debt, both interest bearing and non-interest bearing as set out above, as well as to claim default interest and to enforce security.

The company disputes in full the lenders' understanding of the restructuring agreement. The company will, if necessary, have the matter resolved legally.

There is no cross-collateral or cross-default to the NOK 525 million bond loan issued in December 2024.