Litigation Coverage: Moby Accuses Bondholder, Morgan Stanley of Trying to Scuttle Restructuring

With more than 25 updates on Italian ferry operator Moby so far this year, our European coverage team has been looking closely at the stressed credit. The big news at the end of September, was that Moby SpA was suing Antonello Di Meo, Morgan Stanley and Morgan Stanley employees Massimo Piazzi and Dov Hillel Drazin in the Southern District of New York for “attempting to illegally acquire control” of the company and its Italian concordato restructuring proceeding by purchasing a controlling stake in Moby’s bonds at a “substantial discount using inside information.” 

The company also sought an injunction barring the defendants, which Moby says hold 26.33% of senior secured notes, from “acquiring, selling or otherwise trading any notes issued by Moby,” “attaching any Moby assets” or “otherwise interfering with Moby’s restructuring,” which the company says will soon include a chapter 15 filing in the United States. We will continue to cover the situation as it unfolds. If you are not currently a Reorg subscriber, you can request trial access here: