MMH deposits bond repayment funds, but rescue deal still awaits completion

Mediterranean Maritime Hub (MMH) is insisting that the funds needed to repay its €15 million bond have been deposited in escrow, marking a significant development for bondholders after months of uncertainty over whether the company could meet its October repayment deadline.

But the rescue deal is not out of the woods yet. The announcement does not confirm that the share purchase transaction underpinning the rescue has been completed, nor does it disclose the conditions governing the release of the money.

In a company announcement, MMH Finance said the redemption funds had been deposited in an escrow account held by its stockbrokers, Calamatta Cuschieri Investment Services Ltd.

The company said it expected to make all payments to bondholders, including interest, in full and on time, under the terms of its September 2016 prospectus.

The bond matures on 14 October 2026.

The deposit represents a material advance from earlier assurances that repayment depended on attracting investors and securing fresh capital. MMH now reports that the money required for redemption has been placed with its stockbrokers.

Financial services experts told The Shift that an escrow deposit is not the same as payment to bondholders and that the announcement confirms that more time is needed. The announcement provides no details on whether releasing the funds depends on completing the acquisition, satisfying outstanding conditions or obtaining further approvals.

It also does not specify the amount deposited or explicitly confirm whether the escrow balance includes the final interest payment, although MMH says it intends to honour that obligation.

The proposed rescue of the beleaguered concession owned by Gozitan businessman Paul Abela involves investors acquiring a combined 49% stake.

The Shift previously identified the incoming investors as Ebcon Investments, associated with Salvu Ellul, Exult Holdings and Sajal Ltd.

In April, sources told The Shift the overall package was valued at around €40 million and was intended to cover the bond repayment, accumulated losses, and unpaid concession fees.

By June, however, The Shift reported that the transaction remained unfinished despite an earlier April completion target. Appointments to the operating company’s board signalled investor involvement but did not establish that the acquisition had closed.

The latest announcement describes the share purchase as progressing within the timeframes agreed between the parties, without providing a completion date.

For bondholders, the deposit offers stronger reassurance than previous promises of investment.

MMH has promised further announcements in the coming days and weeks.