Trading in bonds issued by Moby Lines have been suspended after the Italian ropax operator failed to make a payment to bondholders.

The Luxembourg Stock Exchange announced the move after Moby breached a grace period suspending payments on interest and amortisation on its €300m ($320m) senior notes and senior secured bank debt.

Moby said “an event of default” has occurred in relation to both facilities, although talks to restructure the debt would continue.