Havila Kystruten: Information related to Havila Capella

Havila CapellaHavila 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 22nd 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 (Havila Voyages) 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 provided 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.

(Havila Kystruten)