Bank accused of misleading prospective bond investors

MeDirect Bank and its directors have been accused in a judicial protest of omitting potentially material litigation from the prospectus for a €30 million bond issue, raising questions about the information provided to prospective investors.

The protest, brought by Andrew Vaswani, challenges disclosures in the bank’s prospectus dated 31 August 2026 for its 5.85% unsecured subordinated bonds.

It points to a statement that no governmental, legal or arbitration proceedings during the preceding twelve months might have, or had had, significant effects on the bank’s financial position or profitability.

Vaswani contends that the bank knew of three sets of proceedings that warranted assessment for disclosure, including litigation concerning Daniels Shopping Complex, situated in Hamrun, and enforcement proceedings involving assets of Alison Investments Limited.

One case challenges a deed acknowledging a debt of approximately €13.94 million and seeks damages. Another challenges the basis of enforcement and judicial sale proceedings. The protest also refers to proceedings described as criminal in nature involving the bank and former directors.

The Court has made no decision yet on these claims.

Vaswani called on MeDirect and its directors to explain whether the proceedings were considered when preparing the prospectus and whether they were communicated to the Malta Financial Services Authority.

He also requested reassessment of the disclosures, any necessary correction or supplement, and urgent regulatory examination before allocation, listing and trading.

MeDirect announced that the issue was oversubscribed by existing bondholders. Its published timetable anticipates an allocation announcement, listing and trading from next month.

The bank came under Czech ownership when Banka Creditas completed its acquisition of MeDirect’s parent group from AnaCap in September 2025.

Separately, The Shift has been informed that a court case concerning an alleged €2 million compensation commitment to former Medifin preference shareholders is expected in the coming weeks.

That dispute concerns promises allegedly made during the takeover and is distinct from Vaswani’s protest.

Creditas previously rejected allegations of wrongdoing or failure to meet its contractual or legal obligations in the compensation dispute.