MMH board secretary steps down amid crucial negotiations to save €15 million bond

The concessionaire company of the Mediterranean Maritime Hub (MMH), better known as the Marsa Shipbuilding site, has suffered another unexpected twist in its long saga to save a €15 million bond from default.

Its company secretary, one of the most important officials of the organisation, has resigned with immediate effect, sending shockwaves among various companies that are negotiating the possibility of saving the company from bankruptcy by acquiring its shareholding.

In a short company statement, MMH announced the immediate departure of Michael Zammit Maempel, both from the financial vehicle holding the bonds and from the mother company, MMH Holdings Ltd, the guarantor of the financial vehicle.

The company said that the secretary’s decision to step down “follows his decision to divest himself of all professional services as a Company Services Provider (CSP)”.

Zammit Maempel’s departure after nine years occupying the role comes at the worst time for the company, which is negotiating with several potential investors to sell shares in exchange for new financing to cover the company’s massive debts.

He has been replaced by Angelique Abela, the daughter of Paul Abela, a Gozitan businessman who was given the concession by Labour in 2016.

Sources told The Shift that although the company secretary’s departure might not be directly associated with the company’s turbulent situation, it is still being considered as another indication of the massive financial trouble MMH has found itself in.

As revealed by The Shift, a preliminary agreement on a share transfer has already been reached between Paul Abela and several interested parties, mostly large developers and contractors; however, no final transaction has been signed.

The Shift is informed that due diligence on the company, particularly its substantial debts, is still ongoing, and no decision has been made on when, or if, a final settlement will take place.

It is estimated that the company has more than €30 million in debts, with hundreds of bondholders and major banks, including Bank of Valletta and APS.

Earlier attempts by the government to avoid a bond default, which would have created shockwaves in Malta’s restricted bond market, were abandoned after the finance minister objected to public funds being used to bail out a private company.

The Malta Stock Exchange has suspended bond trading, as the company was unable to present its audited accounts for 2024.

Without a fresh injection of funds, MMH is destined to collapse.

Meanwhile, Abela, the main shareholder, is residing in a villa in southern Spain..