Moby SpA, the ferry organization that interfaces Italy’s mainland with its islands, filed for Chapter 15 bankruptcy procedures in the U.S. as it looks to complete a disturbed rebuilding process at home. Moby, owned by the Onorato family, has been under pressure from expanding regulation, harder competition and powerless cargo traffic volumes somewhat recently, and was additionally hit by the pandemic travel restrictions. In June 2020, the organization requested of a court in Milan for a court-supervised restructuring procedure, however its income developed above assumptions this summer.
In November, a Milan Court ordered the seizure of 20 million euros ($22.8 million) of assets of Moby’s parent company, Onorato Armatori Srl, at the request of Tirrenia di Navigazione SpA, an insolvent company whose assets were bought by beleaguered Moby in 2011. The Onorato Group said at the time that the seizure order would be appealed.
The company reached a non-binding restructuring deal with a group representing more than a third of bondholders on Sept. 24, but needs a majority of them to support it at a meeting scheduled for Jan. 20. As part of the plan, the group could provide new financing.
Moby’s 300 million euros of bonds were indicated at 76 cents on the euro on Jan. 14, up from a record low of 28 cents reached in April.
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