Eqva ASA

Legal Proceedings Report • Oct 20, 2020

Compulsory composition with creditors

Compulsory composition with creditors

Reference is made to the stock exchange announcement of 11 February 2020, which stated that the subsidiary Havyard Ship Technology AS ("HST") had applied for debt negotiations pursuant to section 2 of the Bankruptcy Act. Debt negotiation was immediately opened, which turned into negotiation of a compulsory composition.

The shipbuilding projects which at that time were under contract with HST were completed with the delivery of newbuilding no. 145 on 6 August 2020. All creditors were then, as planned, presented with a proposal for a compulsory composition based on payment of the first NOK 10,000 of all claims and 25% of the remaining debt. As part of the arrangement, all group companies confirmed to stand back with their claims until all external creditors had received such a dividend.

The vote on compulsory composition has now been completed. At the deadline on 19 October 2020, had 160 of 181 eligible voters (88,40%) voted in favour, no voters against, and 21 creditors had not voted. The votes in favour constituted 95,87% of the total eligible claim, and 100% of the voting creditors. Consequently, the solution for a compulsory composition has received sufficient support and will be sent to the district court for confirmation. HST does not anticipate any problems with such confirmation, and payments will take place when the appeal deadline expires 4 weeks after the confirmation.

Final clarifications remains regarding the size of the dividend-eligible claim with a small number of creditors, meaning that it has not yet been clarified how large a dividend the group companies (mainly Havyard Group ASA) will receive. The amount will be between MNOK 5 and 15 millions. A completed composition will strengthen the equity for the group estimated at approximately MNOK 60, depending on the final accounting and the outcome of the disputed requirements.

For further information, please contact:

Gunnar Larsen (CEO)

gunnar.larsen@havyard.com

+47 90 10 56 94