MMH repays €15 million bond in full amid investor rescue deal

Mediterranean Maritime Hub Finance has confirmed that its €15 million outstanding bond was repaid in full, ending months of uncertainty over whether the company would meet its repayment deadline.

In a company announcement, MMH Finance said the redemption included all accrued interest up to maturity on the 4.8% unsecured bonds issued under its September 2016 prospectus.

The confirmation settles the immediate question facing bondholders, although the announcement does not establish whether the wider investor rescue transaction has been completed.

The company thanked investors for their trust in the MMH Group and their support over the years. It provided no further details about the source of the repayment funds or the status of the proposed share acquisition.

The Shift reported in September that MMH had deposited redemption funds in an escrow account held by its stockbrokers, Calamatta Cuschieri Investment Services.

At that stage, the company said it expected to pay bondholders in full and on time. However, the announcement did not disclose the amount deposited or the conditions governing its release.

MMH now confirms that both the principal and accrued interest were paid on the contractual maturity date.

The repayment follows negotiations over a proposed rescue involving investors acquiring a combined 49% stake in the maritime business owned by Gozitan businessman Paul Abela.

The Shift previously identified the incoming investors as Ebcon Investments, associated with businessman Salvu Ellul, better known as ‘tal-Elbros’, together with Exult Holdings and Sajal Ltd.

Sources told The Shift in April that the overall package was worth around €40 million, intended to cover the bond redemption, accumulated losses and unpaid concession fees.

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

In September, MMH described the share purchase as progressing within the timeframes agreed between the parties, without announcing a completion date.

For bondholders, the company’s confirmation closes the uncertainty surrounding the October maturity and final interest payment.