Suspension of MMH bonds trading extended to end August

Trading in the €15 million Mediterranean Maritime Hub (MMH) bonds, on the verge of an unprecedented default, will remain suspended at least until the end of August, the company said, in the latest development of a long-drawn saga which could end up harming hundreds of investors and the banks.

Trading in the bonds on the Malta Stock Exchange was suspended weeks ago, as the company owned by Gozitan businessman Paul Abela was unable to publish its financial results for 2024.

While at first it was expected that the trading would resume by the end of this month, since Abela pledged to present the accounts by June, this has now been extended.. According to a new company announcement, the company “needs more time”.

MMH said it will now need another two months to conclude ongoing discussions in an attempt to find investors to shore up the ailing company and settle its massive debts.

According to the company, “The Guarantor has set a target date for 25 August, by when such publication is expected to be made.”

Until then, MMH bondholders cannot trade their bonds.

Earlier this week, The Shift revealed that a preliminary agreement had been reached between Abela and several private investors to take over his 65-year concession of the former Malta Shipbuilding, together with some €30 million of debts.

Apart from the €15 million bond, which Abela cannot pay, he also owes millions to third parties, including Bank of Valletta and APS Bank.

The consortium investing in Abela’s holding company comprises various seasoned maritime industry stakeholders, as well as developers, including Bonnici Brothers, Paul Attard of GAP Group and Y&P Cranes, that do not have any connections to the maritime industry, raising suspicions this may become a real estate project.

Financing for the deal is still being negotiated with the banks.

So far, the government is insisting that the terms of the concession will not change.

Originally, the concession was granted to Abela for exclusive use in the oil and gas industry.