Yacht Lift Malta plc bondholders have approved a proposal to exchange the company’s €2 million Prospects MTF bond, which was due for redemption on 13th September 2025, for a new two-year issue.

The decision was taken during a bondholders’ meeting held on 12th September 2025, with a quorum present, the company confirmed in a market announcement.

Bondholders backed a resolution to redeem the original bond in exchange for the creation of €2 million in secured callable unlisted notes 2025-2027. These new notes, with a nominal value of €100 each, will be issued at par under a private placement memorandum dated 29th August 2025.

In its statement, the company thanked investors for their continued support following the approval of the proposal.

Edward Rizzo, Director at Rizzo Farrugia & Co, observed in his blog that the Yacht Lift case underscores the risks tied to smaller issuers on alternative markets such as Prospects MTF. He highlighted how trading suspensions, delayed financial reporting, and the decision to roll over the bond rather than redeem it on maturity raise concerns about transparency and investor protection.

He also pointed out that the new €2 million notes will not be listed on the Malta Stock Exchange, but issued as unlisted paper through a private placement, leaving investors with a less liquid instrument than the original bonds.

Missed maturity avoided for now

The approval means that Yacht Lift has secured an extension of two years to meet its bond obligations. The company had faced growing pressure as the original issue, launched in 2021, approached maturity while trading in the bonds had been suspended for more than a year due to missed reporting deadlines.

Audited financial statements for 2023 were only published recently, and the company has pledged to release its 2024 results by the end of this year in a bid to improve transparency.

Bond market pressures

Yacht Lift’s rollover comes at a time when Malta’s bond market is facing wider challenges. Several issuers, including DIZZ Group, Central Business Centres, MMH and Shoreline, have been navigating financial headwinds this year. Others, like HH Finance, are still moving forward with new issues –⁠ in HH’s case a planned €27 million bond offering.

For Yacht Lift, today’s result provides breathing space, but it also raises questions about investor confidence in smaller issuers listed on alternative markets like Prospects MTF. The move from a listed instrument to a private placement structure means bondholders will now hold unlisted paper, trading of which is typically more limited.

While the company has underlined that its bonds are backed by a strong security package comprising four residential properties, the focus will now shift to whether it can deliver on its commitments in the extended timeline.