Eqva ASA

Legal Proceedings Report • Feb 11, 2020

Debt negotiation in subsidiary

Debt negotiation in subsidiary

Reference is made to the stock exchange announcement of 3 December 3 2019 regarding the financial situation of the subsidiary Havyard Ship Technology AS ("HST"), including agreements that ensure completion and delivery of the vessels that were already and still are being outfitted at the shipyard.

The Board of Directors of HST has today decided to seek for debt negotiations pursuant to Section 2 of the Bankruptcy Act. A request for debt negotiation is therefore filed with Sogn og Fjordane District Court on Tuesday, 11 February 2020.

The decision is part of the planned restructuring of the shipyard operations in Havyard Group ASA ("HGR"), and is based on the fact that HST is unable to settle its obligations to creditors. This is because the expected final settlement from ongoing projects is not considered sufficient to fully settle HST's obligations to creditors.

The shipbuilding projects under construction by New Havyard Ship Technology AS, a wholly owned subsidiary of HST, will be continued as planned and are not expected to be affected by the fact that debt negotiations are requested for HST.

HGR is working on analyzing the effects that debt negotiations in HST could have on other companies in the HGR group, and expects to be able to report this shortly. However, it must be expected that both the parent company and sister companies to HST must bear losses - in line with HST's other creditors - as a result of the debt negotiations initiated in HST.