Norwegian shipbuilder Havyard Group has won approval from creditors for a debt settlement deal.
In February, shipbuilding subsidiary Havyard Ship Technology (HST) applied for debt negotiations under the Bankruptcy Act.
The last vessel delivery was made on 6 August. All remaining ship contracts have been transferred to successor entity New Havyard Ship Technology (NHST).
All creditors were then presented with a proposal for a settlement based on payment of the first NOK 10,000 ($1,075) of all claims and 25% of the remaining debt.
Big vote in favour
Of 181 eligible voters, 160 — or 88% — voted in favour, while the rest did not vote.
The votes in favour represented 96% of the total claims.
The scheme will now be sent to the Norwegian district court for confirmation.
"HST does not anticipate any problems with such confirmation, and payments will take place when the appeal deadline expires four weeks after the confirmation," the group said.
Final clarifications remain to be made regarding the size of some claims with a small number of creditors.
As part of the arrangement, all Havyard group companies, controlled by the Saevik family, agreed to stand back with their claims until all external creditors had received their cash.
Cash going to parent
Havyard Group will eventually receive between NOK 5m and NOK 15m, however.
The deal will boost group equity by NOK 60m, Havyard added.
The yard in Leirvik was closed from 2 to 19 October after 91 workers tested positive for Covid-19.
The company is constructing a platform supply vessel for Atlantic Towing, a car and passenger ferry for another Saevik company — Fjord1 — and three accommodation vessels for Esvagt.
In May, it financed the remaining ships in its orderbook in a deal with banks and shipowners.
Havyard Group said the final vessels are scheduled for delivery in mid-2021.
