By Luca Casiraghi

(Bloomberg) — Havila Shipping ASA stated it has thus far didn’t get sufficient help from bondholders to postpone repayments on 5.7 billion kroner ($647 million) of debt.

The Norwegian operator of oil-rig help vessels canceled a gathering with bondholders scheduled for Wednesday because it seeks additional talks to achieve an settlement with bond collectors by the top of the month, in response to a press release on Tuesday from the Fosnavaag-based firm. Havila is in search of to increase the maturity of its 2016 and 2017 bonds to 2020 and defer curiosity funds on among the notes, in accordance a presentation on the Oslo Stock Exchange on Jan. 5.

Havila is asking for a reprieve to deal with crude oil costs which have dropped to a 12-year low. The firm, which has to repay 2.8 billion kroner in curiosity and principal earlier than the top of 2017, stated it’s in search of to restructure debt as a result of it expects antagonistic market situations within the subsequent few years.

The restructuring “does not fix the problem, which is too much leverage,” stated Kristoffer Pedersen, an analyst at Nordea Bank in Oslo wrote in a be aware to purchasers on Jan. 8. “We find extremely unlikely that the unsecured debt can be repaid in 2020.”

The firm’s chief government officer and chief monetary officer didn’t returns calls and e-mails in search of touch upon the debt talks.

Havila’s financial institution lenders have agreed to the proposal, which additionally permits the corporate to decelerate fee of its loans. The firm nonetheless wants the help of two thirds of every class of bondholders. If the proposal is accepted, shareholders will inject 200 million kroner of extra money, in response to the assertion.

–With help from Neil Denslow.

©2016 Bloomberg News