Moby withdraws lawsuit against bondholders

Italian ferry operator Moby is voluntarily discontinuing its lawsuit against a group of asset management firms holding its bonds.

The company said in a statement that the lawsuit "has facilitated productive discussions between Moby and its creditors, including the defendants, towards reaching a long-sought agreement on Moby's restructuring."

Moby had recently filed the lawsuit in the New York State Court in Manhattan against funds including Sound Point Capital Management LP, Aptior Capital LLP, BlueBay Asset Management LLP and Cheyne Capital Management (UK) LLP. Moby had said these firms were conducting an “unlawful campaign to take over Moby” as part of the firm's debt restructuring. The aforementioned managers make up the ad hoc group of bondholders in the restructuring.

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.

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.