By | 2020 Newsletter week 7 | No Comments

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.


By | 2019 Newsletter week 47 | No Comments

Moby Bondholders Ready to Support a Financial Restructuring of the Company

“The Bondholder Committee, which in recent months has agreed with Moby before the Court of Milan to ascertain the specific legal context and principles that today’s management of the group’s activities should comply with, once again underlines that business continuity, the safeguarding of maritime connections and territorial continuity, and the protection of existing jobs at what it hopes can continue to be a leading Italian shipping company, are essential in order to protect its corporate value. This is in the interests of all stakeholders – bondholders included.”

That’s the message being circulated by a group of investors (mainly private equity and hedge funds) who earlier this year bought (at a discounted price) a large part of the 300 million euro Senior Secured Notes due in 2023 and issued by Moby in 2016 with a 7.75% interest rate. This statement comes after many seafarers, worried about the ferry company’s future, took to Naples’ streets in protest during the weekend.

Presumably in order to calm their fears, the bondholders also added: “The Committee has expressed multiple times to Moby’s management and advisors its willingness to support appropriate restructuring of the group’s debts (even at the cost of renouncing part of their own operating profits), with the goal of being able to report a level of debt that is sustainable for the business”.

The statement concluded by saying: “The Committee has also expressed equal willingness when it comes to new investments, in the context of the hoped-for restructuring, which would allow the company to operate smoothly and with the goal of acquiring new market shares in the medium term.”