Moby in Talks with Investment Funds for its Rescue Plan

By | 2020 Newsletter week 42 | No Comments

The financial news provider Reorg Research revealed that “Fortress Investment Group, Clessidra Sgr and Europa Investimenti are amongst the funds discussing with Moby about a possible new money provision amid the group’s restructuring”, according to some sources. The process is in progress, but nothing has been decided yet.

Moby has been in talks with some investment funds for a deal designed to potentially unlock a standstill with creditors, as reported. The funds would be willing to provide new money to the group or, alternatively, buy its bonds and subsequently close a restructuring agreement with the company and its banks, according to sources.

The Onorato family-controlled company has to present a restructuring proposal by October 28 but it is expected to request a 60 days extension to the Court of Milan, where it filed for creditor protection under the concordato preventive procedure at the end of June.

Moby closed the first half of 2020 in red for EUR 50 million and the overall financial exposure increased to EUR 643 million, of which 160 million with banks, 295 million with bond holders and 140 million with subsidiaries.

FERRY FINANCE

By | 2020 Newsletter week 27 | No Comments

Moby Filed For Protection From Its Creditors Under Italian Insolvency Law

Milan, June 29, 2020 – “The boards of directors of Moby SpA and CIN SpA have resolved to present a request for a reservation pursuant to art. 161 sixth paragraph l.f. for both companies,” a statement from the company said.

“This choice has the aim of allowing the companies to continue negotiations with their creditors for the achievement of a restructuring agreement under the supervision and protection of the Milan court, protect business continuity and ensure the normal operation of routes for customers, employees and allied industries” the Onorato-controlled company added.

Moby Group hopes to reach, within the terms established by law, an agreement with its own creditors “which is fair, of common satisfaction and capable of guaranteeing that the companies can overcome their current difficulties and continue the relaunch of the Group in the interest of all stakeholders”.

The Milan-based ferry company said it is “in the best position to seize the opportunities that are emerging with the resumption of travel, and has already put in place all the necessary actions to continue to grow. The opportunities include, the strengthening of all connections – and in particular to and from Sardinia – reaching a total of 166 departures, the early reopening of the Corsica season, and the new partnership agreements to expand the offering to Sicily”.

Passenger Transport Between Sardinia And Italy Reopens – Excluded Ferry Companies Protest

By | 2020 Newsletter week 23 | No Comments

Italy’s transport minister announced on June 2nd that passenger transport to and from Sardinia island could re-open.

In a first phase only the ferry company operating the territorial continuity (i.e. Tirrenia – Compagnia Italiana di Navigazione) is allowed to start.

For all the other players operating on the same routes (Corsica Sardinia ferries, Grimaldi, Grandi Navi Veloci and Moby) the restart-date is June 13th.

The same rule applied for air transportation. Only public airline firm Alitalia was allowed to start.

This decision has been fiercely opposed by the shipowners and logistics associations Confitarma and Federlogistica supporting respectively Grimaldi and Grandi Navi Veloci’s interests. They ask the minister to rethink the act, also recalling antitrust issues as the measure would distort competition among ferry operators.

Moby’s Seasoned Ferry GIRAGLIA up for Sale and Likely to be Scrapped

By | 2020 Newsletter week 18 | No Comments

The 1981-built ferry Giraglia owned by Moby Group is being circulated by several ship brokers as the Onorato-controlled company put the asset up for sale.

One of the messages circulated on the market reports that, following the grounding which took place recently in front of the port of Santa Teresa di Gallura, ship’s bottom and its relevant structures found are damaged with hull longitudinal breach. The vessel, which was deployed on the route between the north of Sardinia (Santa Teresa di Gallura) to the south of Corsica (Bonifacio) is indeed defined as “to be repaired”. Given its age (almost 40 years) the GIRAGLIA may be sold for scrap.

Regarding the ongoing negotiation with the creditors, the Italian financial newspaper IlSole24Ore reported this week that Moby is in advanced talks with the banks and the bondholders to restructure the company’s debt under the 182-bis procedure insolvency law.

FERRY SHIPPING

By | 2020 Newsletter week 15 | No Comments

Moby in Talks with Rimorchiatori Riuniti Panfido for Selling Tugboat Division

Moby said in a statement to be in talks “with an experienced third-party operator for a potential divestment regarding the tugboat business unit within the approval of the Group’s restructuring plan”.

Ferry Shipping News can exclusively reveal that the third party involved in the negotiation is the Rimorchiatori Riuniti Panfido group which is also involved in the tug business in the ports of Venice, Chioggia and, in joint venture with Smit, in assistance to the Rovigo offshore regasification plant.

The statement from Moby added that “the company has been monitoring the situation closely for potential opportunities in respect of its own tugboat division since there has been a market wide consolidation for tugboat services in the Mediterranean Sea. In case of a potential deal the Company will primarily use the proceeds of any divestment to repay its existing creditors”.

Moby’s tugs are active in all the major ports in Sardinia and the related concession, due to expire in 2024, generates EUR 20 million annual revenues.

Moby’s RoRo Hartmuth Puschmann Ready For Delivery To Arab Bridge Maritime

By | 2019 Newsletter week 46 | No Comments

Moby’s HARTMUTH PUSCHMANN has been renamed AMAL, registered in Limassol and is now ready to leave Italy.

The 1993-built roro ship was sold earlier this year for €13 million but it has been operating on the maritime link between the ports of Livorno and Cagliari in bareboat charter for the last six months.

The name of the new owner remained undisclosed, but some sources told Ferry Shipping News that it might be the Middle Eastern company Arab Bridge Maritime, while the vessel is likely to be deployed in the Red Sea region.

TOP STORY

By | 2019 Newsletter week 44 | No Comments

DFDS – Moby Agreement On New Amsterdam-Newcastle Ferries Cancelled

Official statement from DFDS:

On 6 September 2019, DFDS entered into an agreement with Moby to acquire two ferries, MOBY WONDER and MOBY AKI, for deployment on the Amsterdam-Newcastle route.

Moby would in turn acquire the two passenger ferries currently operating on Amsterdam-Newcastle, KING SEAWAYS and PRINCESS SEAWAYS.

The agreement was expected to be completed in the second half of October 2019, but Moby has unfortunately not been able to meet the delivery terms of the agreement. The agreement has therefore been cancelled.

DFDS will continue to explore solutions for a renewal of the ferries on the Amsterdam-Newcastle route.

Official statement from Moby:

The reason for the cancellation is that Moby has been unable to deliver to DFDS the two vessels free of the mortgages that have been granted to Unicredit as Security Agent for Moby’s secured financings. Moby believes that Unicredit was contractually obliged to provide consent to the release of the vessel mortgages as security agent, and intends to raise this issue formally with Unicredit as Security Agent and with its lenders.

FERRY SHIPPING

By | 2019 Newsletter week 41 | No Comments

Good News For Moby: Court Rejects Insolvency Petition

The Court of Milan has completely rejected the insolvency petition presented by certain bondholders against Moby S.p.A.

By an order filed on Wednesday 9 October, the Court of Milan, composed of three judges and upholding the defence by Moby S.p.A., dismissed the insolvency petition presented by certain bondholders and awarded costs against them.

Under the order in question, not only did the Court of Milan find the allegations of a current state of insolvency groundless, in as much as the company is not burdened by any tax or social security liabilities, is not subject to any enforcement or provisional action and does not appear, in its current state, to be unable to pay its debts as they fall due, but the Court also held that there are no extraneous circumstances at present that show the subsistence of a prospective state of insolvency.

Moby is therefore evaluating the possibility of making a claim against speculative funds who filed the petition with a view to recovering damages for loss caused by their groundless action. (source: note on Luxemburg Stock Exchange)

This good news for Moby is also good news for DFDS. An insolvency could have jeopardised the agreement about the sale of the ferries to DFDS.

FINANCE

By | 2019 Newsletter week 37 | No Comments

Milan-based Moby has just published its H1-2019 financial report for the six months ended June 30, 2019.
Some highlights:

  • Total revenue amounted to EUR 253.6 million, an increase of 20.2 million, mainly due to the increase in freight transport, chartering and port operations.
  • Total revenues for the three months of Q2, amounted to EUR 151.4 million, an increase of EUR7.2 million driven by the ferries unit, mainly related to passenger and vehicle transport and chartering, and port operations.
  • Excluding the impact of the IFRS 16 application, the six months registered a loss of EUR 27.9 millions (the red was EUR 60.208 millio in the first half 2018) while the result for Q2 resulted in a loss of EUR 11.6 million.

As for the capital gains, Moby specified that they are attributable to:

  • The sale of AURELIA in February by CIN, obtaining a capital gain, net of the costs of sale, of EUR 4.7 million
  • The sale of PUSCHMANN in March by CIN, obtaining a capital gain, net of the costs to sale, of EUR 9.9 million
  • The sale of the San Cataldo tugboat BARLETTA in March, incurring a loss, net of costs of sale, of EUR 26,000
  • On July 16, 2019 the subsidiary CIN finalised the sale of the vessel BARBARA KRAHULIK for EUR 12,650.