Havila Shipping Fends Off Bankruptcy

by San Antonio Attorney

Havila Shipping, a Norwegian offshore firm, was able to avoid bankruptcy after reaching a deal with bondholders on restructuring of debt.  The company averted bankruptcy at the last moment, after the bondholders disapproved the proposals earlier.  The plan is going to provide a fresh start and more time for Havila Shipping to boost its earnings in the next four year.

The deal between Norwegian offshore firm and its creditors trades about 3.2 billion NOK balance maturities for 2017-2019 with roughly 67 million NOK of lowest fixed amortization.  Moreover, the interest for debt is going to be cut by 1.6 billion NOK with fresh investment capital, coming from the proceeds of selling non-core ships, reduced debt repurchase and trading of debt to equity.

The deal was approved by over two thirds of the leftover bonds in all of the issued bonds.  This legalized the agreement and kept the company operating until 2020 or longer.  At this period, the Board of Directors guaranteed to make the operations more efficient and repair the company’s balance sheet.

Havila Shipping operates 22 ships, such as ships for anchor handling tug supply, platform supply, subsea construction and rescue- and recovery.  The company provides nautical support services for worldwide offshore oil and gas manufacturing, to acquire and manage the assets considered as desirable or necessary for this, and to offer related services.  Havila Shipping’s key markets are the Asia Pacific region and North Sea.

No company or person wants to declare bankruptcy, but in certain situations bankruptcy is the most practical solution for unmanageable debt.  Consulting a Bankruptcy Lawyer San Antonio is a good start to deal with this type of problem.

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