Morgan Stanley Avoids U.S. Legal Action by Italian Ferry Company

Beleaguered Italian ferry operator Moby SpA dropped its request for an order blocking Morgan Stanley from trading in the company’s debt or interfering in its restructuring, Bloomberg News reported. Moby told a federal court in New York late Sunday that it was withdrawing its application for a temporary restraining order against the bank, which it accused in a Sept. 27 lawsuit of participating in a secret plan to foil its restructuring in Italy and seize control from other creditors. The company, which operates ferries between the Italian mainland and islands like Sardinia, said it would now be seeking Italian court permission to pursue its claims through a chapter 15 U.S. bankruptcy filing. Morgan Stanley on Friday filed court papers deriding the U.S. lawsuit as a meritless attempt to dictate the outcome of Moby’s Italian restructuring proceedings. The bank said Moby failed to show that Morgan Stanley interfered in Moby’s relationship with its creditors or that it had done anything wrong in purchasing the company’s bonds. Read more.