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    Havila Shipping unveils restructuring plan

    News // November 9, 2016

    Havila Shipping has unveiled a financial restructuring plan which it says is supported by secured bank lenders and Havila Holding, its largest shareholder. The plan has also obtained support from the company's unsecured bank lenders. The company says it will enable Havila Shipping to endure the severe market downturn and to continue safe operations of its fleet to the benefit of all stakeholders.
    The restructuring plan will provide Havila Shipping with a financial runway until November 2020, replacing approximately NKr 3.2 billion of debt maturities in the period 2017-2019 with around NKr 67 million of minimum fixed amortization. The net interest bearing debt will be reduced by approximately NKr 1.6 billion through injection of new risk capital, sale of non-core vessels, discounted debt repurchase and conversion of debt to equity.
    The plan is subject to approval from bondholders in the company's bond loans HAVI 04, HAVI 06/07 and HAVI 08. A summons to bondholders' meetings will be sent today, and the respective meetings will be summoned to take place on 23 November 2016. The company said it has maintained a close dialogue with representatives of key secured and unsecured bondholders through the process of developing the plan. However, no pre-approval for the plan from any of the bondholders exists.
    "Given the current situation, the company's Board of Directors perceives this plan to be the only available and final alternative to obtain a consensual restructuring solution that is likely to be accepted by its largest group of creditors. Pursuant thereto, a contingency plan supported by the secured bank lenders is in place if the required approval of the restructuring plan fails," the company said. Among other things, the plan includes divestment of non-core vessels. 

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