A US bondholder is rebelling against the financial rescue plan of Oslo-listed MPC Container Ships (MPCC).

Fund manager Cohanzick Management says the restructuring proposal favours shareholders of the Oslo-listed company at the expense of bondholders.

It is demanding that the proposal is pulled.

That idea has received short shrift from MPCC which accuses the dissenting investor of seeking to "exploit" the post-Covid 19 recovery of the feeder boxship owner.

Cohanzick founder David Sherman is seeking fresh talks to secure an additional $30m in fresh capital for the feeder boxship owner, according to reports by the Norwegian daily Finansavisen.

The proposal has been rejected by MPCC.

It said its own bond amendment had approval from a majority of shareholders and described it as "unfortunate to see certain bondholders promoting a diverging agenda."

"Seemingly, specialist funds are willing to exploit the adverse impacts caused by Covid-19 and put the operations of the group at great risk," it said.

"In addition, the alternative proposal recently set forth by the same bondholder fraction appears not to benefit all bondholders equally."

"Certain aspects of the alternative proposal are technically not feasible to accommodate."

Revised bond amendment

MPCC has been hoping to raise $15m through a share sale that would enable it to avoid a "fire sale" of ships.

The move is designed to avoid covenant breaches and liquidity issues.

But the company said it would issue a revised bond amendment comprising $27.5m of new common equity, of which $20m will be injected into MPCC.

It comes after reports that Cohanzick had put forward an alternative plan where Sherman's company would be willing to guarantee a capital increase of $30m.

Cohanzick specialises in credit investments and has a portfolio of in excess of $1.7bn.

Sherman told the Norwegian press that that 32% of the bondholders are prepared to vote against the MPCC proposal, and that several others are considering doing so.

Strategic players

Sherman said that strategic players have approached MPCC with the aim of buying up ships at rock bottom prices.

TradeWinds reported that Greek shipowner Nikolas Pateras is looking to acquire part of the bond-financed MPCC feeder boxships.

The proposal by the Pateras company Contships Management applies to up to 20 of the 39 collateral vessels that were financed with the help of $200m worth of high-yield bonds maturing in September 2022.

But MPCC managers are hoping to avoid the sale of so many ships.

"Our aim is to secure an amicable solution and protect value for our stakeholders," they said.

"Entertaining unsolicited bids for our vessels that lack substance and are structured as a one-sided option are certainly not part of the solution."