Havila Shipping is seeking a standstill agreement with its creditors after it received insufficient support from bondholders for revised restructuring proposals.

Havila failed to gain the two-thirds support it needed from bondholders it need by today to fulfill master agreement with its creditors.

“The company remains in a challenging position, and will immediately work with its financial creditors in order to reach a standstill agreement. While these discussions are ongoing the company has decided to halt payments of interest and amortization to all of its finance providers,” Havila said.

It said bank lenders had indicated support for the standstill it would call meetings of bondholders.

Havila said it would be maintaining all operations and paying trade creditors in anticipation of a successful outcome to its discussions with financiers.