Havila Kystruten AS: The company has taken legal action to become owner of Havila Capella and securing its interests in the ships under construction

Havila Kystruten AS: The company has taken legal action to become owner of Havila Capella and securing its interests in the ships under construction

16 Jun 2022 12:11 CEST

Havila Kystruten has taken legal action to become the owner of Havila Capella
that has been out of operations since 12(th) April caused by insurance
companies' termination of the ship insurances.

Havila Capella was delivered from Tersan shipyard to Havila Kystruten on 3(rd)
November 2021 and started to sail on the coastal route between Bergen and
Kirkenes on the 12(th) December 2021.

The long-term financing for the ship is a financial lease where the
documentation provides that Havila Kystruten is fully responsible for the
operation as it would have been if the ship was wholly owned by the company.
Havila Kystruten has a purchase option two years after delivery and a purchase
obligation at the end of the contract period with the Ministry of Transport.

The leasing company is a company registered in Hong Kong and owned by the
Russian company GTLK.

Havila Capella is booked in the accounts of Havila Kystruten AS as a Norwegian
property and is taxed in Norway as a Norwegian ship. The ship sails under the
Norwegian ordinary ship registry (NOR) and the seafarers on board have Norwegian
conditions for wages and social security arrangements.

The leasing company was, on the 8(th) April 2022, by EU, added on the list of
sanctioned companies as a result of Russia's warfare in Ukraine.

Despite that the payment obligation under the financial lease arrangement being
unaffected by whether the ship is in operation or not, the ship's insurances
were cancelled by the insurance companies following the sanctions. Havila
Capella has been out of operations since 12(th) April 2022.

Havila Kystruten has been in continuous dialog with several ministries in the
Norwegian government, to find a temporary solution, allowing operation of the
ship along the coast under the assigned contract with the Ministry of
Transport. So far, no political acceptance to operate Havila Capella has been
achieved.

In parallel Havila Kystruten has had an ongoing dialog with the management of
GTLK to search for an amicable solution or agreement where Havila Kystruten
again could obtain insurance coverage for the relevant risk exposures that
operation of the ship imposes.

The loan documentation in place, and which establishes rights and obligations
under the financial lease arrangement, is regulated by English law. Havila
Kystruten has therefore in co-operation with Norwegian and English lawyers,
taken required legal actions to ensure the transfer of legal title and the
formal ownership of Havila Capella to the Company, by legally redemption of the
debt to GTLK, where all restrictions following the sanctions are safeguarded.

Particular of Claims was filed on the 15 June 2022 with the Business and
Property Courts of England and Wales, and declarations are sought that there has
been no default by the charterer under the bareboat charter and that payment of
the termination sum to a frozen bank account is good discharge of the
charterers' obligation under the bareboat charter. By payment of the
termination amount to the frozen bank account, transfer of title to the Vessel
should be registered in the name of Company. The court hearing has not yet been
scheduled, but is expected in the near future.

Redemption of current debt to the leasing company depends on successful
refinancing of the ships delivered and the ships under construction for delivery
later this year.

The legal actions also includes measures to protect the interests of the Company
in the two ships which are still under construction at Tersan Shipyard. An
injunction has been granted by the High Court of England and Wales on 15(th)
June 2022 stating that no transaction can be carried out or undertaken in
respect of the two vessels under construction without the prior approval of
Havila Kystruten AS. A subsequent hearing in the court is scheduled to 24(th)
June 2022.

A subpoena has also been filed in Norway for a temporary injunction to grant
full control over Havila Capella so the ship can be insured in the name of
Havila Kystruten AS.

Contacts:

CEO Bent Martini, + 47 905 99 650
CFO Arne Johan Dale, +47 909 87 706

More information:
Access the news on Oslo Bors NewsWeb site

Source

Havila Kystruten AS

Provider

Oslo Børs Newspoint