Shoreline Mall plc has secured overwhelming support from bondholders for its proposal to postpone repayment of its €14 million bond by two years, with more than 95 per cent of those voting approving the restructuring

The company announced on Tuesday (yesterday) that bondholders approved the proposed amendments to the terms and conditions of its 4 per cent Secured Bonds 2026 during a meeting held on 30th June. A quorum was reached and the resolution was approved by 95.65 per cent of bondholders present in person or by proxy.

As a result, the bond's redemption date has been extended from 1st August 2026 to 1st August 2028, although the company retains the option to redeem the bonds early, either in whole or in part, by giving 30 days' notice.

Bondholders will also benefit from an increase in the annual coupon rate from 4 per cent to 6.5 per cent, effective from 31st July 2026, together with a one-off commitment fee equivalent to 0.25 per cent of the face value of their bonds, payable alongside the interest coupon due on 1st August 2026.

The approved amendments also introduce a number of additional protections for bondholders.

These include an indemnity from Shoreline Residence Limited and its parent company, Shoreline Holdings Limited, covering claims brought against Shoreline Mall plc by contractor Koray Global Malta Limited in connection with the ongoing litigation. The company has also undertaken not to repay intercompany debt or lend money to other companies within the Shoreline Group until the bonds are redeemed.

Subject to the lifting of the garnishee order obtained by Koray Global Malta Limited, Shoreline will also establish a dedicated sinking fund that will be administered exclusively by the security trustee. The fund will receive the net proceeds from future sales of the development's villas as well as rental income generated by Shoreline Mall, with the monies to be used solely for the early or final redemption of the bonds.

In addition, the company undertook to ensure that any third parties contracting with Shoreline waive any special privilege they may otherwise acquire over the secured property under Maltese law.

The vote follows several days of heightened scrutiny surrounding the proposed restructuring.

Shoreline had argued that precautionary garnishee orders obtained by Koray Global Malta Limited created a procedural obstacle that hindered its planned refinancing of the bonds. Koray publicly disputed that explanation, maintaining that Shoreline's financial difficulties pre-dated the legal dispute and questioning whether the garnishee orders were the principal reason for the proposed extension.

In comments to WhosWho.mt ahead of the vote, Shoreline director Ryan Otto also confirmed that a funding commitment from the company's ultimate parent, Jade Property Investments Ltd, remains available as one of several repayment options, stating that the company is pursuing multiple alternatives "sequentially in order of preference."