Sound Point, BlueBay, Cheyne Sued by Italian Ferry Firm Moby

Ferry operator Moby SpA is suing a number of bondholders including Sound Point Capital Management in a New York court, alleging they made unlawful attempts to take control of the firm in a debt dispute, Reuters reported. Moby, which runs routes between the Italian mainland and islands such as Sardinia, says a bondholder group which also includes BlueBay Asset Management, and Cheyne Capital Management, attempted an “egregious tortious interference” to “unlawfully” take control of the company, according to documents filed on February 22. It’s now seeking damages from the funds. The company has been locked in negotiations with bondholders since 2019 as falling freight traffic left it struggling to keep up with interest payments on its debt. Bondholders made an unsuccessful attempt to push the company into insolvency in September 2019. Over the last three months, the investors rejected two separate restructuring proposals. The latter would have earned the funds “approximately five times” their investment in the notes, the company said in the lawsuit. Read more.