Since April 12, the Havila Capella has been docked in Bergen after insurance companies terminated its coverage due to sanctions against Russian interests. The long-term financing agreement with GTLK Asia for the vessel is a finance lease, in which the loan documents grant Havila Kystruten all rights and responsibilities for operating the ship as if it were its sole property. The company has an option to purchase the vessel from the leasing company two years after delivery and an obligation to purchase it at the end of the contract with the Ministry of Transport and Communications. On April 8, GTLK was added to the EU's list of sanctioned companies due to Russia's war in Ukraine.
On April 26, the company received a waiver from the Ministry of Foreign Affairs to operate the vessel for six months. This had to be specifically requested by the insurance provider, and that request was rejected on May 9. During this period, Havila Kystruten has been working on short-term solutions to get the ship back in service, while also exploring options for a change of ownership.
Havila Kystruten has filed a lawsuit with the High Court of Justice, Business and Property Courts of England and Wales, Commercial Court (QBD), in London, to force the change of ownership of the vessel.
“It is important for us to regain ownership of Havila Capella. We have tried to find a solution with GTLK Asia. We want to reach an agreement by paying the amount we owe to GTLK Asia into a blocked account. The amount will be paid to GTLK Asia when the sanctions are lifted,” says Havila Kystruten CEO Bent Martini. “We have also found little willingness on the part of our financial partner to find an amicable solution, and we fear they will sell our debt to a third party, further complicating the situation. Therefore, we have now opted to take legal action to demand a change of ownership.”.
Havila Kystruten has been in continuous dialogue with several Norwegian ministries to find a temporary solution that would allow him to operate the ship, but so far no solution has been found.
“Progress in the change of ownership will resolve the issues we face, meaning the Havila Capella will receive full insurance and be able to resume operations along the Norwegian coast. It will mean a great deal to us financially to have the vessel back in service, but it also means a great deal to coastal communities and Norwegian tourism,” says Martini.
“In the agreement, we are obligated to purchase the ship within 10 years, while also retaining the right to repurchase it during the contract period. At the same time, this type of agreement assumes that Havila Kystruten has all other responsibilities for the vessel, so the true ownership and title relationship rests with our shipping company. The financial arrangement also means that the Havila Capella is capitalized as property of Havila Kystruten and is also a tax resident in Norway,” Martini explains.
A ruling from the English courts regarding the Havila Capella is expected within a reasonable timeframe. A petition was filed with the Hordaland District Court on June 16th requesting the temporary arrest and enforced use of the Havila Capella.
