Mediterranean Maritime Hub Finance plc has confirmed that the funds required to redeem its €15 million bond in October 2026 have been deposited into an escrow account, marking a significant development for the company after years of uncertainty surrounding its ability to repay bondholders.
In a company announcement issued on Friday (today), MMH Finance said the share purchase transaction previously announced by the company remains “fully on track” and is proceeding according to the agreed timeframes.
Crucially for bondholders, the company confirmed that the funds required to redeem the bond in full at the end of its ten-year term have now been deposited into an escrow account held by stockbrokers Calamatta Cuschieri Investment Services Limited.
MMH Finance said it “fully expects and intends” to make all payments, including interest, to bondholders in full and on time, in accordance with the prospectus issued in September 2016.
The announcement represents a major development for MMH, which had previously acknowledged that it required alternative financing to redeem the €15 million bond when it falls due on 14th October 2026.
The group has been seeking strategic investors amid concerns over its financial position and ability to meet its obligations.
In 2023, MMH signed a letter of intent with Virtu Holdings, the operator of Virtu Ferries, and a subsidiary of Francis Busuttil & Sons, one of Malta’s leading food distributors. However, that transaction ultimately fell through.
In September 2024, the company subsequently acknowledged that it would require “alternative financing” to redeem the bond. Attempts to reach a “balanced” termination of MMH's concession with Government were also unsuccessful.
MMH holds a 65-year lease over the former Marsa Shipbuilding site, granted by the Maltese Government in 2016.
The uncertainty surrounding the bond continued into 2025. MMH Finance nevertheless met its €720,000 annual interest payment to bondholders in October of that year, after telling WhosWho.mt that preparations to meet the obligation had been ongoing for some time.
Attention then increasingly shifted towards the company's ability to redeem the €15 million principal when the bond reached maturity in October 2026.
The funding is part of the share purchase transaction announced by MMH, involving a group of investors stepping into the business.
The company added that further announcements will be issued in the coming days and weeks to keep bondholders and the public informed of relevant developments.
Learn more about MMH and the circumstances leading up to this development here.
