Troubled Norwegian firm Havila Shipping is undertaking financial restructuring process to help steer it through the industry downturn.
Havila has reached an agreement with its secured and unsecured bank lenders to reduce amortisation for three years, postpone maturities and replace all existing covenants, subject to bondholder approval and a minimum NOK200m equity issue.
Havila said it does not expect that the market will improve materially in the short to medium term and moved to create a “sufficient liquidity buffer” to operate through 2018.
The move comes as Petrobras terminated the contract for Havila Princess. Havila said the contract, valid until September 2017, was blocked by local tonnage and the certificate needed.
“The downturn in the offshore market has, as for other major players in the sector, had a significant impact on the company,” Havila said in a statement.
It added: “The market for offshore vessels is characterised by supply far exceeding demand. As a consequence of low fleet utilisation and rates achieved, many vessels in this segment have generated revenues below operating expenses. Further, vessel valuations are expected in general to extend its decline.”
The company was forced to lay up two AHTS vessels last September.
The firm, which was founded in 2003, operates 27 vessels, including subsea construction, anchor handling, platform supply and multi-field recovery vessels.