Investors withdraw from MMH rescue talks as €15 million bond risk deepens

A third attempt to avert a potential default on €15 million in bonds issued by Mediterranean Maritime Hub (MMH) has collapsed, after a consortium of Maltese investors withdrew from advanced talks to acquire significant stakes in the concession for the former Marsa Shipyards site in Marsa.

The negotiations, which had stretched over several months, were aimed at injecting fresh capital into the loss-making operation ahead of the bond’s 2026 maturity. Trading in the MMH instruments has been suspended after the company failed to publish its 2024 audited accounts, as required under listing rules.

MMH confirmed the breakdown in talks in a company announcement, stating it had rejected the consortium’s final offer.

The Shift is informed that the investors, which also included prominent real estate developers, had initially been prepared to pay a multi-million-euro sum for the concessionaire. However, the gap between the offer and the price demanded by the controlling shareholder, Gozitan businessman Paul Abela, is understood to have been in the region of €10 million.

The investors were reportedly taken aback by the extent of the company’s liabilities, which exceeded earlier assumptions. “They found a far more challenging financial picture than expected,” sources told The Shift.

The latest development marks the third failed effort to shore up MMH’s finances. A previous deal proposed by Virtu Ferries and Foster Clark several years ago did not materialise. The government also explored taking back the concession and compensating Abela to allow bondholders to be repaid at maturity, but those talks broke down over price.

Despite the latest setback, new interest has emerged.

The Shift is informed that two local operators – a large construction group with aquaculture interests and a Marsa-based crane services company – are in discussions to acquire a minority stake. Talks are described as advanced, but no agreement has been reached. Any deal under consideration would reportedly leave Abela as the majority shareholder.

MMH was awarded a 65-year concession to redevelop the former shipyard into an oil and gas servicing hub in 2015. The project has struggled to gain commercial traction, and the site has been used for activities outside the scope of the concession terms.

The company has accumulated significant debts and is viewed as effectively insolvent without a fresh capital injection. The €15 million unsecured bond, issued in 2016, matures in October 2026.