Havila Shipping Fends Off Bankruptcy

The Norwegian operator of oil-rig support vessels won support from holders of two-thirds of its bonds, according to a statement. The company said last week it would probably seek court protection if there was no agreement on Monday.

Havila lenders had announced plans to call in borrowings after bondholders failed to support a debt reorganization. Norwegian oil-service providers are suffering because crude prices below $50 a barrel have damped drilling, while competition has surged due to a flood of vessels ordered before the market collapse.

Havila’s shares surged as much as 87 percent to 1.78 kroner in Oslo trading. Its 500 million kroner ($58 million) of August 2017 bonds are quoted at 15 percent of face value, according to data compiled by Bloomberg.

The company has been working on a restructuring agreement for about a year, as well as mothballing vessels and shedding staff to cut costs. Under the plan announced earlier this month, Havila will get new investment from its main shareholder and support from banks, while its 5.2 billion kroner of net debt will be cut by almost 30 percent.

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