Tuna rancher tables latest rescue offer for MMH bondholders

Bondholders in Mediterranean Maritime Hub (MMH) face a further delay in learning whether they will recover a €15 million investment made through a 2016 bond issue, after a new prospective investor entered talks to acquire a stake in the troubled operator of the Marsa Shipyards concession.

Sources said that local entrepreneur Salvu Ellul ( “Ta’ l-Elbros” and owner of Malta Fish Farms Ltd), a multi-million-euro tuna fattening operation, has signed a preliminary agreement with concession holder Paul Abela to inject fresh capital into MMH through a share purchase.

A second company, MJK Crane Hire and Logistics, is also expected to take a stake in a move that could provide a lifeline to hundreds of retail bondholders.

In a company announcement describing a “binding agreement”, MMH said the proposed investment remains subject to due diligence and regulatory approval. The group added that the deal is intended to ensure full redemption of the bond on its scheduled maturity date in October 2026, including accrued interest.

MMH said the transaction is “expected to be completed by the end of April 2026” and remains contingent on standard due diligence procedures and the issuance of all necessary regulatory clearances by the government.

The company also signalled that it expects to publish its long-delayed financial statements later this month – a move seen as essential for a final agreement to be reached.

Trading in MMH’s bonds on the Malta Stock Exchange was suspended earlier this year following breaches of listing rules, deepening investor concern over the company’s financial position.

The most recently published accounts show heavy losses, and the concessionaire has warned it would be unable to redeem the outstanding €15 million bond without new equity investment.

Abela, a former Gozo Channel chairman, has attempted to secure fresh backing for several years, but previous deals collapsed once potential partners scrutinised MMH’s liabilities and the conditions attached to the Marsa Shipyards concession.

Paul Abela told investors that certain terms had been improved through a government-issued side letter. However, the letter carries no legal standing and does not form part of the concession agreement.

The Gozitan businessman, who now resides in Spain, acquired the 65-year concession for the former shipyards in 2015 under the administration of disgraced former prime minister Joseph Muscat. The agreement restricts use of the site to activities linked to the oil and gas sector, although other operations – including boatyard services and events – have been tolerated by authorities, so far.

The government has also explored options to reclaim the concession, but talks stalled after Abela rejected the compensation offered.