Havila Shipping receives notice of acceleration from bank lenders

New York, Nov 25 – Havila Shipping ASA received a notice of acceleration from its secured bank lenders, according to a news release.

Havila said it has discussed the notice with representatives of the lenders and concluded that its previously announced restructuring proposal is the “only viable alternative” to bankruptcy.

A deadline of 9 a.m. ET on Nov. 28 has been set to receive support from stakeholders.

Havila previously failed to obtain support from bondholders at a meeting on Wednesday.

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.

After the company’s proposal failed to achieve support that meeting was canceled.

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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