November 21, 2019

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.”