Havila Kystruten AS: Information related to Havila Capella

19 Apr 2022 08:00 CEST

Background

Havila Capella was temporarily taken out of service on Thursday April 14th after
conditions in the company's financing meant that the ship's insurance was
affected by sanctions against Russia.

The financing

Havila Capella is financed through a leasing company in Hong Kong. The company
is owned by the Russian company GTLK which is owned by the Ministry of Transport
of Russia. Until 22(nd) of February 2022, GTLK was a large and reputable
financing company with operations worldwide.


A Norwegian business

This applies to Havila Capella. When Havila Kystruten took over Havila Capella
from the Tersan shipyard, the formal owner became a GTLK owned company in Hong
Kong. Despite that, the ship is a Norwegian ship and tax object in the sense of
accounting and taxes.


Havila Capella is registered in the Norwegian Ordinary Ship Register with the
Hong Kong company as the formal owner following a dispensation from the
Norwegian authorities in accordance with Norwegian law.


The financing and the formal registration do not change the fact that Havila
Kystruten controls and operates Havila Capella as if the financing were an
ordinary bank loan. Havila Kystruten has a right of purchase and a purchase
obligation for Havila Capella in accordance with the desire for long-term
control of the ship.

Ship insurance and liability

Havila Kystruten has rights, obligations and responsibility for the operation of
Havila Capella. As usual and necessary, Havila Kystruten has insured its assets
and liability with the insurance coverage that is common or required by law for
the operation of ships.


Insurance also covers liability Havila Kystruten has as a result of
international conventions to which Norway has acceded. This also applies to
liability imposed on the formal owner. Without these insurances, the ship cannot
sail.

Possible solutions

Havila Kystruten is working along all conceivable channels to find a short-term
solution to get Havila Capella back into operation as soon as possible. In the
company's assessment, a short-term solution requires the participation of the
Norwegian authorities in relation to sanctions against Russia.


The company hopes that a temporary solution exists, and that it can be active
until a permanent solution is possible. Havila Kystruten's goal is of course to
become the formal owner of Havila Capella. In parallel with a solution to get
Havila Capella up and running, work is underway to refinance the company's four
ships.

Havila Kystruten apologizes

Havila Kystruten understands that passengers that were on board Havila Capella
and had looked forward to traveling with the ship last Tuesday, are
disappointed. The same, of course, applies to passengers who were to board at
other port of calls. The company also regrets missing information while waiting
for a clarification. It is in the nature of the case that the information
appears to be deficient, especially in cases where new facts are not available.
The company's assessment was that canceling the trip for passengers, as long as
it was still possible for Havila Capella to sail, was not the passengers' desire
either.

Further information

Havila Kystruten will keep travelers, employees and the market up to date with
information when the information is tangible enough for the individual to use
the information in their basis for assessing the situation.


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

This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act

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