MMH bonds to remain in the balance until the eleventh hour

The fate of the Mediterranean Maritime Hub’s (MMH) €15 million bond is set to remain uncertain until just weeks before its October maturity, with the company’s refinancing plan hinging on a capital injection that is only expected to materialise in September.

The latest Financial Analysis Summary for 2026, published by Mediterranean Maritime Hub Finance plc, shows that the company remains conditionally solvent. However, its own financial projections acknowledge that the group will only be able to meet its obligations if fresh funds are injected by existing shareholders and a group of incoming investors.

This will keep its lenders – bondholders – on tenterhooks on whether they will get back their cash until the end.

The planned investment follows an agreement announced in April under which Sajal Holding Limited, Exult Holdings Limited and EBCON Investments Limited will acquire a 49% stake in MMH Holdings, the group’s parent company. Among the investors is businessman Salvu Ellul, known as ‘Ta’ l-Elbros’ – one of the largest developers on the island. While the investors have already deposited €1.8 million into an escrow account as a sign of commitment, the balance of the investment is only expected to be injected in September, subject to the agreement’s conditions being fulfilled.

Industry sources told The Shift that the latest announcement leaves the refinancing of the bond effectively hanging in the balance until the eleventh hour, just weeks before the €15 million 4.8% bond falls due in October.

In its analyses, the company itself makes no secret of this dependence.

The report states that projected cash flows over the next 12 months assume fresh capital from both the new investors and existing shareholders, with the primary objective of the funding being the redemption of the outstanding bond and payment of the final coupon.

Without the completion of the investment, the refinancing plan would remain incomplete.

The MMH Group operates the former Malta Shipbuilding site in Marsa under a 65-year concession. Its operating subsidiaries provide marine logistics, engineering services, vessel maintenance, oil and gas support and commercial marine activities. Currently, it is owned by Paul Abela, a former chairman of Gozo Channel, who moved to southern Spain a few years ago.

Operationally, the picture is more positive than the financing position suggests.

Accoridng to the new report, the group reports continued growth in its Vessel Care division, which generated approximately €2.8 million more revenue during 2025 than in the previous year. Management expects further growth in 2026 as it expands technical marine services, pursues new oil and gas contracts and continues diversifying into the yachting sector.

Since taking over the former Malta Shipbuilding facility in 2016, MMH sadi that it has invested approximately €44 million in redeveloping the site, with a long-term investment programme expected to reach around €55 million.

However, despite these operational improvements, the company’s financial position remains closely tied to the successful completion of the September investment.

The company will have to fold down in case the new investment doesnt happen.