February 13, 2020

Moby Announced a Standstill Agreement with Bondholders and Negotiation with the Banks

The Milan-based Moby group announced that it entered into confidentiality agreements and a standstill agreement with a group of bondholders under the €300 million bond, due 2023, issued by Onorato Armatori Spa (company subsequently merged into Moby).

Pursuant to the standstill agreement, the company shall, inter alia, provide certain due diligence information to the group of bond holders with a view to the Moby group and with the objective to negotiate the terms of a potential restructuring transaction. “In change the financial investors shall refrain from taking enforcement or repayment actions against the company. It is contemplated that the Standstill Agreement shall continue until 29 February 2020” the announcement from Moby explains.

The ferry company controlled by Vincenzo Onorato is also engaged in discussions with the banks (Unicredit, Intesa Sanpaolo, Ubi, Banco bpm and Mps) under the €260 million loan regarding a potential restructuring transaction. “In connection with the ongoing discussions with the lenders, the company has made a request for the lenders to standstill during this period” Moby informed.

The Onorato-controlled group concluded specifying that “the company will not make in mid-February the scheduled payments due under the notes and the senior facilities agreement, or the scheduled amortization payment due under the senior facilities agreement”. Moby’s business and operations are expected to continue to operate as normal during the restructuring discussions.