Updated 16:44

Twelve companies within Dizz Group have been ordered to deposit with the court any money they owe to the companies behind The Shoreline development in Kalkara, rather than making payments directly to those companies.

The decree follows an email from Dizz Group indicating that it had received instructions from the owners of The Shoreline regarding how future payments should be made. According to this communication, Dizz Group had been instructed to continue making payments either directly into Shoreline Mall's bank account or through cheques issued in the name of Shoreline Mall.

However, the court has now ordered the 12 companies to deposit any outstanding amounts owed to the Shoreline entities in court.

The decree also warns that Maltese law provides for the arrest of individuals for up to three months should they fail to comply with such an order.

Dizz Group operates the Maltese franchises of several international retail and hospitality brands, including Terranova, Liu Jo, Guess, etc. Some of these brands operate outlets within The Shoreline Mall too.

WhosWho.mt is informed that Dizz Group is not the only company that was ordered by the court to surrender the payments directly to Shoreline. 

Shoreline's €14 million bond restructuring

Shoreline Mall plc earlier this year secured bondholder approval to extend the maturity of its €14 million bond by two years.

During a meeting held on 30th June, 95.65 per cent of bondholders voting in person or by proxy approved amendments to the terms of the company's 4 per cent Secured Bonds 2026.

The decision extended the bond's redemption date from 1st August 2026 to 1st August 2028, while increasing the annual interest rate from four per cent to 6.5 per cent, effective from 31st July 2026.

Bondholders were also granted a one-off commitment fee equivalent to 0.25 per cent of the face value of their holdings.

The restructuring introduced additional protections, including an indemnity from Shoreline Residence Limited and its parent company, Shoreline Holdings Limited, covering claims brought against Shoreline Mall plc by Koray Global Malta Limited.

Shoreline Mall plc also committed not to repay intercompany debt or extend loans to other Shoreline Group companies until the bonds are redeemed.

Subject to the lifting of the garnishee order obtained by Koray, the company also undertook to establish a dedicated sinking fund, administered by the security trustee, into which rental income from the mall and net proceeds from future villa sales would be directed towards bond repayment.

Contractor disputes Shoreline's explanation

The bond restructuring followed disagreements between Shoreline and Koray over the financial implications of the ongoing litigation.

Shoreline had maintained that precautionary garnishee orders obtained by Koray created obstacles to its planned refinancing arrangements.

However, Koray publicly disputed this explanation, arguing that Shoreline's financial difficulties predated the legal proceedings and questioning whether the garnishee orders were the principal reason behind the proposed extension.

In comments previously made to WhosWho.mt, Shoreline director Ryan Otto confirmed that a funding commitment from the company's ultimate parent, Jade Property Investments Ltd, remained available as one of several potential repayment options.

He explained that the company was pursuing different funding alternatives sequentially, according to its preferences.

Shoreline Mall reported €1.6 million loss

The legal developments also follow a challenging financial year for Shoreline Mall plc.

According to its financial statements for the year ended 30th June 2025, the company registered a loss of €1.6 million, despite generating €2.4 million in net rental income, compared with €779,419 in the previous year.

The company reported an operating profit of €56,453 after accounting for depreciation and amortisation costs of approximately €1.9 million. However, financing costs contributed to the overall loss.

Total assets stood at approximately €76 million at the end of June 2025, down from €85 million a year earlier.

Shoreline Mall plc's principal activities include managing the shopping complex, generating rental income from commercial units and parking facilities, and developing residential villas for resale.

The villas had been substantially constructed at the time of the financial statements, with finishing works remaining before their planned sale.