Norwegian shipowner Havila Shipping has clinched compensation for the early loss of a cable-layer charter after counterparty DeepOcean filed for court protection for its UK businesses.

The settlement is final and involves both an unspecified cash payment and the acquisition by Havila of equipment on the 127-loa Havila Phoenix (built 2009). The kit includes remote operated vehicles previously owned by DeepOcean.

Havila tore up the contract for the ship in December.

The Havila Phoenix had served DeepOcean since 2013 and had a firm deal up to May 2023, with further options.

UK filing

DeepOcean, which is headquartered in Oslo, filed for court protection on 18 November to wind up its UK-based activities, including the subsidiary that chartered the Havila Phoenix.

Havila said the vessel had just finished a project for DeepOcean, but was given no further indication about future work.

As a result, the Norwegian owner said DeepOcean was in breach of contractual obligations, including payment default.

Havila had asked for payment from DeepOcean and offered the vessel to the market.

The Norwegian company also said deputy chief executive Olav Haug Vikebakk has resigned to take up another role in the Nordic region. He will leave during the first quarter.

The DeepOcean restructuring relates to three UK subsidiaries — DeepOcean 1 UK, DeepOcean Subsea Cables and Enshore Subsea — in its cable-laying and trenching (CL&T) business.

Winding down

The High Court action in London is planned to allow these units to wind down on a solvent basis.

DeepOcean said it remains committed to the renewables sector and to investing in new technologies that reduce costs and emissions for the industry.

Chief executive Oyvind Mikaelsen said: "Despite our long-term commitment to the cable lay and trenching division, it has been loss-making for some time.

"We have invested and explored structural alternatives to turn around the business. However, the division is not sustainable and there is no prospect of it becoming profitable under current market conditions and with current contractual obligations."

He said the court process allows the rest of the group to move to a secure financial footing.