Moby files lawsuit against bondholders

Italian ferry operator Moby S.p.A. has filed a lawsuit in the New York State Court in Manhattan against certain holders of its bonds, including Sound Point Capital Management LP, Aptior Capital LLP, BlueBay Asset Management LLP and Cheyne Capital Management (UK) LLP.

The company alleges that these fund managers are conducting an “unlawful campaign to take over Moby” as part of the firm's debt restructuring, according to a statement from law firm Quinn Emanuel Urquhart & Sullivan LLP, on behalf of Moby. The aforementioned managers make up the ad-hoc group of bondholders in the restructuring.

Moby said the defendants are "refusing to engage in good-faith efforts to restructure the company.”

The company filed for creditor protection at a court in Milan under Italy's bankruptcy procedure "concordato in bianco" process at the end of June after defaulting on its debt, which includes €300 million of 7.75% secured notes due 2023 and €260 million of credit facilities (comprising a €200 million amortizing term loan and a €60 million RCF). The bonds were placed via issuing entity Onorato Armatori S.p.A..

A number of restructuring proposals have been presented as part of the court process, but Moby says the funds have rejected the proposals. The ferry operator also alleges that "certain defendants traded Moby's bonds despite being prohibited from doing so," according to a press release from the company.

Sound Point, BlueBay and Cheyne declined to comment, while Aptior did not respond to a request for comment.

The company is advised by PWC and law firm Gianni, Origoni, Grippo, Cappelli & Partners. The bondholders are advised by Houlihan Lokey and law firm Chiomenti and Gatti Pavesi Bianchi.

Owned by the Onorato family, Moby operates passenger and freight ferry services under the Moby and Tirrenia-CIN names, off the Italian coast.

Moby’s bond and loan debt package was raised in 2016 to finance a dividend to repay acquisition debt, and for general corporate purposes.