Note 19 2015 - Havfisk ASA

The company is exposed to risk attaching to the value of its investments in subsidiaries through changes in prices on the finished goods market, to the extent that such changes result in changes in the competitive power and earning potential of these companies over time. The Norway Seafoods Group is the company's largest customer and a close partner. The HAVFISK group owns several processing plants that are rented by Norway Seafoods Group on long-term contracts. A subordinated loan was also established in the amount of NOK 100 million in connection with the distribution of shares in Norway Seafoods Group AS. The outstanding balance with Norway Seafoods at year end was NOK 163 million gross. Provision has been made for loss of NOK 21 million of this. See also notes 12 and 18 in the consolidated financial statements for further information.
The company has no current hedge transactions related to foreign currencies and no sales in foreign currencies.

The company leases administrative services from Aker ASA on market terms.
The company leases office premises in Løvenvoldgt. 11 in Ålesund, ref. note 22 in the consolidated accounts.

Long-term interest-bearing liabilities	1 133 610
Current interest-bearing liabilities	117 286
Total mortgaged liabilities	1 250 896

Book value of mortgaged assets:
Receivables from Group companies	1 082 206
Property, machinery and equipment	1 414
Shares in subsidiaries	862 891
Total mortgaged assets	1 946 511

The company's subsidiary has provided guarantees of up to NOK 1,532 million for mortgage loans. Remaining liability as at 31/12/2015 is NOK 1,214,861. The group has a group account system, in which cross-guarantees have been provided. The company has also provided bank guarantees of NOK 13 million related to tax deductions.

See description in the annual report.

On 11 December 2013, Nordland Havfiske AS entered into a contract regarding an agreement to sell the vessel Jergul, including 1.35 quota units for cod and haddock. The agreement did not come into effect due to lack of approval by the authorities, which was a prerequisite for the implementation of the agreement. The agreement expired on 01/07/2014 since no approval had been received from the authorities. The implementation of the transaction was later rejected by the authorities.

HAVFISK and Nordland Havfisk AS have received a summons from Hermes AS in this case, with a claim for compensation for loss up to an upper limit of NOK 150,328,200.- including interest. The claim was reduced to NOK 110 million during proceedings in the district court. The case was heard in Nord Troms district court in November 2015. In its judgement of 11 November, the court concluded that the claim against HAVFISK and Nordland Havfisk AS should be dismissed and HAVFISK awarded costs.

Hermes AS has appealed the verdict to the Court of Appeal and it is expected that the case will be heard during 2016.

NOK 1.1 million of the company's recognised cash and cash equivalents is held in a restricted account for tax deductions and deposits. The company has a group overdraft facility with DNB Bank ASA. As of 31.12.2015, the company had not drawn on this facility. Neither did the HAVFISK group in total draw on the group overdraft facility. The group overdraft facility has an upper limit of NOK 87 million.

Note 19

Legal disputes / contigent events