Havila Shipping ASA: Debt Settlement and Shareholder Dynamics

Havila Shipping ASA, a Norwegian shipping company, has recently provided updates on its lenders' feedback regarding the settlement of the company's debt. The company's lenders had a deadline of September 30, 2024, to choose between settling the debt by the end of 2024 or extending the agreement by one year until December 31, 2025. The final figures for the debt settlement or conversion into shares will be clarified once the accounts for the third quarter are available.

Based on preliminary estimates, interest-bearing debt as of December 31, 2024, will amount to NOK 651 million following upward adjustments. Of this amount, lenders representing NOK 500 million have announced their intention to settle the debt by the end of 2024. This debt is linked to the vessels Havila Fanø, Havila Clipper, Havila Borg, and Havila Subsea. Non-interest-bearing debt related to these lenders is preliminarily estimated at NOK 522 million as of December 31, 2024, corresponding to approximately 21.5% of the company's shares after full conversion.


Lenders representing NOK 151 million of interest-bearing debt as of December 31, 2024, have extended the restructuring agreement by one year. These lenders have also extended the agreement for previously sold vessels. The non-interest-bearing debt related to these lenders is preliminarily estimated at NOK 617 million as of December 31, 2024. The relevant lenders will be allocated shares corresponding to approximately 25.5% of the company if the shares were issued as of December 31, 2024. However, since the agreement has been extended, conversion will only take place at the end of the extended period, which runs until December 31, 2025. The shares will then be allotted, but the number of shares issued will be reduced in line with the relative downward adjustment of non-interest-bearing debt through 2025.


Havila Holding AS will convert part of its liquidity loan to the company into shares to maintain its ownership stake of 50.96% at the same time as other share issues. The postponement of parts of the conversion to shares that the extension of the agreement period entails will result in lenders converting debt as of December 31, 2024, owning approximately 44.8% of the company's shares until the last conversion at the end of 2025. The current shareholders, excluding Havila Holding, will own approximately 4.2% of the shares during this period.

The extension of the agreement means that the subsequent repair issue is postponed until 2026. It should be noted that the ownership percentages above are based on preliminary estimates.

The company has signed a term sheet for the refinancing of the fleet. Contacts for further information can be obtained from Chief Executive Officer Njål Sævik (+47 909 35 722) and Chief Financial Officer Arne Johan Dale (+47 909 87 706).

The conversion of debt into shares will have significant implications for Havila Shipping ASA's shareholder structure and voting power. The settlement of debt will impact the company's ability to invest in new vessels and maintain its existing fleet. Additionally, the extension of the restructuring agreement may affect the company's future financing options.