What the “new Moby” will look like after being restructured

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What will the “new Moby” be like after the debt-restructuring plan? The answer to this question can be found into the two plans that Compagnia Italiana di Navigazione and Moby have filed on 31 March at the Court of Milan.

In the documents is written that the capital increase from Mediterranean Shipping Company S.A. will be “up to EUR 81 million” for a minority stake (25%) in the group. Confirmed is also that the State-owned ‘bad company’ Tirrenia in Amministrazione Straordinaria (born when Tirrenia was sold to Moby in 2012) will be paid EUR 82 million for its credit which is worth EUR 180 million.

Moby also specifies that with the ‘one shot’ payment to Tirrenia in A.S. the two ferries SHARDEN and RAFFAELE RUBATTINO will not be transferred but remain in the group’s fleet.

A new company called ShipCo and controlled by the creditors (mainly banks and bond holders) will own the remaining fleet of ropax units while the harbour tug division is soon to be sold to the highest bidder.

Compagnia Italiana di Navigazione (Tirrenia) will be merged into Moby and the sum put on the table from Aponte to rescue the ‘blue whale’ group “exceed and replace” the EUR 6 million that Onorato Armatori intended to inject in Moby.

The ‘concordato’ procedure under the bankruptcy law at the Court of Milan is intended to receive the final green light and to be completed before the end of 2022; instead the debt  restructuring plan will last for the next three years (up to 2025).

Lenders and bondholders “will see their credits satisfied to the extent of 63.6% plus interest at 3% through the cash flows generated” by the Moby operating company (OpCo) and the company that owns the ferries (ShipCo). OpCo “will pay time charter rates in favor of the ShipCo for a total of EUR 55.6 million. Finally – it is also reported in the plan – it will proceed to the repurchase of the ships in 2025 through a refinancing plan which will be based on a price of EUR 220 million for a company expected to generate, at that date, an EBITDA of approximately EUR 100 million”.

The ShipCo “will sell at the end of 2022 both the ships JANAS and BITHIA for EUR 65 million and in 2023 the ferry ATHARA for EUR 37 million”.

Creditors will also be guaranteed in case of non-performing of the plan through the “possibility of selling the ships on the market and exercising the guarantees obtained, including the pledge of 75% of the shares of OpCo (Moby) held by Onorato Armatori”.

The Vincenzo Onorato-controlled ferry group will also dismiss “assets non-core and not functional to the industrial plan, including in particular: the tugboat division (valued EUR 50 million in 2022), the ships MOBY CORSE (2.9 million), MOBY ZAZA (4.8 million) and GIUSEPPE SA (2 million in 2022), the real estate properties in Piazza San Babila in Milan (4.8 million) and in Olbia (1.3 million)”. The roro GIUSEPPE SA has already been sold for EUR 4.6 million.

As for the two new ferries ordered and under construction at the Chinese shipyard GSI of Guangzhou, scheduled for delivery in 2022 and 2023, in the ‘rescue plan’ there is no longer any mention about the fact that these contracts (bareboat leasing with ICBC and bare boat charter back) will be transferred within the perimeter of Moby (ShipCo) transferring them from the company Fratelli Onorato Armatori which signed the order.

Moby just specified to Ferry Shipping News that both the ferries MOBY FANTASY and MOBY LEGACY “will be operating on the Livorno – Olbia from 2023 as already announced”.

Scandro Holding Ltd is the winning bidder for the Greece – Cyprus line

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Scandro Holding Ltd is the winning bidder (EUR 15.59 million) for the much-expected Greece-Cyprus line.

  • Joint venture between Acheon Akti Navigation and tour operator Top Kinisis Travel
  • Ports: Limassol-Piraeus
  • Ship: DALEELA (1991), Arab Ship Management
  • Journey: 30 hours
  • Capacity 400 passenger and 100 vehicles
  • First crossing: 19 June 2022
  • Number of crossings in 2022: 22 return voyages
  • Last crossing: 16 September 2022

The Cypriot government has committed to funding the connection with EUR 5,5 million per year for a period of three years and a total of EUR 16,5 million.

Photo: Arab Ship Management

Seajets purchased Aegean Speed lines’ SPEEDRUNNER III

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On 29 April 2022, Aegean Speed Lines announced [press release] the suspension of its activities on the Piraeus-Serifos-Sifnos -Milos line after 17 years of continues presence in the Hellenic Coastal Shipping.

Its only vessel, HSC SPEEDRUNNER III, has been sold to SeaJets, who already owns former HSC SPEEDRUNNER IV.

The Eugenides Group (Aegean Speed Lines) says “it intends to continue its presence in coastal shipping.”

Corsica voted for a new DSP of seven years

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The new delegation of maritime public service (“DSP”) was voted on Thursday (28 April 2022) by the majority by the Assembly of Corsica, after 7 hours of stormy debates between the territorial executive and the opposition.

The new DSP 2023-2029 will cover the connection between five Corsican ports and Marseille. Each year, during seven years, EUR 85 million will be available.

The opposition voted against or abstained, for two main reasons:

  • Repeating a 50-year-old scheme that is in favour of Marseille as continental port (longer distance from Corsica than Toulon or Nice)
  • Eight years is too long and prevents any possible start a Corsica-based ferry company.

From several sources Ferry Shipping News understands that the European Commission acknowledged the need for a subsidized service.

Next step: selecting the ferry operators.

DFDS is introducing a new rail freight service Sète-Calais

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  • The new rail service connects London with Yalova in Turkey, as of 17 May 2022.
  • This will shorten transport time between London and Istanbul.
  • Twice a week, with two weekly departures in each direction.
  • This is the latest in a series of investments that DFDS is making to improve its service; a new unaccompanied freight service from Sheerness to Calais, which can carry over 100 trailers or containers per sailing opened in June last year.

There is no such thing as a zero-emission ferry!

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In its strive towards net-zero emissions come 2050, the shipping industry should steer a different course from the one that is focusing only on the CO2 emissions from the fuel. We must focus on the broader picture in the CO2 emissions debate. This is the unambiguous message from OSK-ShipTech, the Danish naval architecture consultancy, which has been instrumental for the designs of many recent high-profile ro-pax ferries.

UK delays Customs Controls until 2023

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Minister for Brexit Opportunities and Government Efficiency announced that the new controls for EU-UK movements, which were previously due to take effect on the 1st of July 2022, have been delayed until further notice.

The following import border controls which were planned for introduction from July 2022 will now not be introduced:

  • A requirement for further Sanitary and Phytosanitary (SPS) checks on EU imports currently at destination to be moved to Border Control Post (BCP).
  • A requirement for safety and security declarations on EU imports.
  • A requirement for further health certification and SPS checks for EU imports.
  • Prohibitions and restrictions on the import of chilled meats from the EU.