Moby Approached Its Ad Hoc Bondholder Group with a Draft Restructuring Proposal

By | 2020 Newsletter week 49 | No Comments

Moby has approached its ad hoc bondholder group with a draft restructuring proposal consisting of new money from a third-party fund and two alternative forms of recovery.

That’s what the news provider Reorg revealed, mentioning sources familiar with the matter.

“Under the draft plan, the creditors may be able to choose between a 30% recovery, and a smaller cash recovery which would, however, also consist in the future proceeds deriving from potential asset sales” the sources said. The proposal is not official yet and may still change.

The size and type of the new money remains unclear.

Funds Clessidra and Europa Investimenti have submitted two non-binding proposals to the Italian shipping group, but Moby seems to be more inclined to select the proposal by Europa Investimenti.

Creditors are discussing the draft proposal and have not told Moby whether they would like to continue negotiations on these grounds, sources said.

The deadline for the Onorato-controlled group to present its restructuring plan is 28 December 2020.