The Court of Milan accepts the debt restructuring plan submitted by Moby and CIN

By | 2022 Newsletter week 17 | No Comments

The bankruptcy court of Milan has just admitted the new debt-restructuring plans presented by Moby and Compagnia Italiana di navigazione after a few weeks ago the judicial commissioners of Tirrenia had “expressed an overall positive opinion on the resilience of the plan”. The latter is based on a preliminary agreement with the State-owned bad company Tirrenia in Amministrazione Straordinaria (creditor for EUR 180 million) and on the EUR 80 million capital increase announced by MSC Group which will take in change a 25% stake in Moby Group.

The Court of Milan officially scheduled for next June 20th and 27th the creditors’ meeting for Moby and Tirrenia CIN respectively.

How will MSC Group rescue Moby and Tirrenia?

By | 2022 Newsletter week 13 | No Comments

Following the breaking news announcement that MSC Group will enter the capital of Moby through a capital increase aimed at paying Tirrenia in Amministrazione Straordinaria (Tirrenia AS = bad company controlled by the Italian Ministry of Economic Development) to allow the immediate reorganization of the Moby group, some more details on the deal are emerging.

The news site Reorg Research revealed that the Geneva-based shipping group MSC will invest about EUR 80 million for a minority stake (25%) in the Italian ferry group and this money will be partly used to repay creditor Tirrenia AS, “which is going to be paid straight after the concordato homologation, and not in four years as previously envisaged.”

“Tirrenia AS will recover about 45%,” sources report.

The 45% recovery will consist of “a EUR 23 million first instalment after the concordato homologation, which will come from the EUR 63 million new money investment made by Moby’s secured creditors, while the rest will be provided via MSC’s money. The remaining cash out of MSC’s EUR 80 million investment will stay on the company’s balance sheet.”

All the ships in fleet will be transferred to a new vehicle company, named ShipCo.

Some ships are destined to be subsequently reassigned to Cin and Moby while others will be progressively sold. Everything that this ShipCo will generate from the rentals and sales of the assets will be used to partially repay the credits with banks and bondholders. Onorato Armatori will remain 75% of a company that owns the routes, the brands and the port terminals but which will be emptied of its fleet.

A green light to the ‘rescue plan’ is still needed from Tirrenia AS and from the Court of Milan.

Addendum 30 March: An agreement in the terms of the debt restructuring has just been reached between Moby and Tirrenia in Amministrazione Straordinaria

Moby’s new flagship launched at GSI shipyard

By | 2021 Newsletter week 45 | No Comments

The new ropax MOBY FANTASY has been launched at the GSI shipyard in Guangzhou, on Saturday 7 November.

She is the first of two new generation vessels set to enter service from 2023.

The ferries have been designed by OSK Shiptech.

MOBY FANTASY:

237m | gross tonnage 69,500 | 2,500 passengers | 550 cabins |

3,800 lane metres for 1,300 cars or 300 trucks |

speed 23.5 to maximum 25 knots | LNG-ready |

They were ordered by Fratelli Onorato Armatori, they are controlled by LCBC Leasing and will be sub-chartered to Moby for the Livorno – Olbia link.

Good news (3x) and extra time for Moby and CIN Tirrenia

By | 2021 Newsletter week 44 | No Comments

Moby announced that the Court of Milan on October 27th “has issued the decrees for the deferral of the meetings of creditors in the context of the composition with creditors of Moby and its subsidiary CIN”.

Under the ‘concordato preventivo’ procedure, the Court postponed the creditor’s meetings:

  • Moby: from 13 December 2021 to 6 April 2022
  • CIN: from 20 December to 12 April 2022

The postponement came after the Vincenzo Onorato-controlled group decided to present a new restructuring plan, supported by a part of the bond holders and where the refund conditions for some class of creditors were significantly improved.

Moby also announced that the shareholder’s meeting held on 28 October 2021 appointed Mr Gualtiero Brugger as member and chairman of the Board of Directors. He succeeds Vincenzo Onorato. Brugger is a professor in economics at the Bocconi University in Milan.

Finally, Moby also made public the decision of the Italian antitrust authority. They reduced the fine for abusing its dominant position for roro freight transportation on the routes linking Italy mainland to Sardinia. (from EUR 29.2 million to 1.0 million)

Moby Charters Out ELIANA MARINO and MARIA GRAZIA ONORATO to DFDS and Cobelfret

By | 2021 Newsletter week 40 | No Comments

DFDS and CLdN are adding more roro tonnage. The ships come from the Moby fleet.

Our colleague from Shipping Italy revealed that both ELIANA MARINO and MARIA GRAZIA ONORATO ship have been sub-chartered from Moby for at least six months.

ELIANA MARINO (2,500 lane metre) will be operated on the Mersin (Turkey) – Trieste (Italy) line by DFDS

Daily charter rate should be around EUR 14,000.

MARIA GRAZIA ONORATO (4,076 lane metre) is expected to be deployed by CLdN in Northern Europe and the ‘charter price’ should exceed EUR 20,000 per day. Both charters start from October.

Both roro’s have been operating up to date by Moby (in bare boat charter) on the Motorways of the Seas, linking Italy mainland with Sicily and Sardinia islands.

State Aid: European Commission Clears Public Support For Several Ferry Services In Italy; Finds Other Measures To Siremar And SNS To Be Incompatible Aid

By | 2021 Newsletter week 25 | No Comments

The European Commission has concluded that the public service compensation granted since 2009 to Sicilia Regionale Marittima S.p.A. (‘Siremar’) and Toscana Regionale Marittima S.p.A. (‘Toremar’) for the operation of ferry services in Italy is in line with EU State aid rules.

The same applies to the compensation granted to their acquirers, respectively Società Navigazione Siciliana (‘SNS’) since 2016 and Moby S.p.A (‘Moby’), since 2012.

However, the Commission found that certain other measures in favour of Siremar, currently in liquidation, and SNS are incompatible with EU State aid rules.

Italy must now recover approximately €1.9 million of illegal aid, including interest.

Moby Submitted A Plan To Save Tirrenia CIN: Five Ferries For Sale

By | 2021 Newsletter week 21 | No Comments

Last Monday (May 24th), Moby filed a ‘concordato’ proposal for its subsidiary CIN (Tirrenia) as no agreement was found with the main creditor, i.e. the judicial administrators of Tirrenia AS, which is in extraordinary administration.

CIN owes EUR 180 million in unsecured debt (deferred payment) for the acquisition of the former public company Tirrenia from the Italian state in 2012.

The procedure will be therefore similar to the one selected also for Moby group since an out-of-court restructuring plan with the ad hoc group of bond holders was not reached either.

According to the plan submitted for Tirrenia CIN to the Court of Milan and exclusively revealed by news site Shipping Italy, five ferries are expected to be sold before 2025 (*)

Moby’s subsidiary is offering a 20% minimum guaranteed recovery to its unsecured creditors and the recovery could increase up to 35%. The repayment would take place at the earliest date of either 31 December 2025 or 36 months after the ‘concordato’ preventive homologation.

(*)

High-speed vessel ISOLA DI CAPRAIA is scheduled for sale in 2022, EUR 1.9 million

  • Roro BENIAMINO CARNEVALE in 2022, EUR 6.8 million
  • Ropax BITHIA in the same year, EUR 29.5 million
  • Ropax JANAS in 2024 for EUR 29.5 million
  • Ropax ATHARA also in 2024 for EUR 32.5 million

Tension Between Moby And The Ad Hoc Group Of Bondholders

By | 2021 Newsletter week 8 | No Comments

As the expiring date of March 28 for submitting the debt restructuring proposal is rapidly approaching, tensions are increasing between Moby and its bondholders.

Last week, news provider Reorg Research reported that the “ad hoc group” controlling 50% of the bonds issued by the Onorato-lead ferry company had sent a counterproposal in response to the Italian shipping company’s latest draft restructuring plan. “The bondholders are focusing on the size of the investment from Moby’s new potential partner Europa Investimenti, which is deemed to be too low. They also believe that the targeted returns on investment for Europa Investimenti are too high and not at market rates” sources said.

Another source of concern for the ad hoc group is Moby’s future governance, which according to the company’s plan, should remain in the hands of the Onorato family.

Latest News From Moby’s Debt Restructuring Plan

By | 2021 Newsletter week 6 | No Comments

News provider Reorg Research reported some details about Moby’s latest debt restructuring proposal: “Recovery for bank lenders will differ from that of bondholders, who will be able to choose between a 30% upfront payment or a smaller initial cash recovery that would also include future proceeds deriving from asset sales”.

The new restructuring proposal “targets the sale of about eight vessels of Moby and subsidiary Compagnia Italiana di Navigazione fleet in five years’ time.”

The proposal also includes the creation of a shipco which would buy the group’s fleet and lease it back to Moby. Investment fund Europa Investimenti would participate in the shipco”.

The Onorato-controlled company sent an updated restructuring proposal to its creditors earlier this month.

Moby Going On Serving Routes Until End of February

By | 2020 Newsletter week 50 | No Comments

After some alarms raised over the maritime continuity in Italy during the last weeks, eventually Tirrenia Cin will go on serving the subsidised routes with the Tremoli, Sicily and Sardinia islands until the end of February.

The decision came after a meeting where the Italian transport ministry made sure that the condition and the financial resources for Moby group will be granted in change for the service offered.

The public contract for the subsidized maritime links between Italy mainland and the islands expired last July but was postponed until 28 February 2021.

The Italian financial newspaper IlSole24Ore also revealed that Moby selected the investment funds Arrow Capital and Europa Investimenti as preferred financial partner for setting up a debt restructuring and turnaround plan to be submitted to bondholders and banks before 28 December 2020, which is the expiring date decided by the Court of Milan.