Yacht Lift Malta plc has called a bondholders’ meeting to propose rolling over its €2 million secured callable bond issue, originally set for redemption on 13th September 2025.

The bonds have been suspended from trading for more than a year. The suspension followed the company’s failure to publish its financial statements within the required timeframe, leaving investors without updated information on its financial position.

A history of delays

The last substantive communication to the market dates back over a year. At the time, the company had told investors: “Discussion remain underway between the parties on how to proceed on the share ownership transfer. In the interim, the existing shareholders of the company have made a fresh injection of €250,000 into the company such as to ensure that the venture has a strong financial base to support its operation and to reiterate their firm financial commitment to the operation.”

Since then, regulatory obligations have been missed. Prospects MTF rules require issuers to publish audited financial statements and financial sustainability forecasts no later than four months after the end of the financial year. Yet the last set of audited financials available dates back to March 2023.

When pressed on this lack of transparency, Yacht Lift acknowledged shortcomings, telling WhosWho.mt: “The company acknowledges the importance of safeguarding bondholders’ interests and regrets that it has not consistently met regulatory expectations in terms of disclosures in the past. With the audited financial statements for 2023 now published and available on the company’s website, and with a commitment to publish its audited 2024 accounts by the end of this year, the company is taking steps to strengthen its compliance and ensure greater transparency going forward.”

Redemption plans

The imminent maturity of the €2 million bond has raised concerns about whether Yacht Lift will be in a position to meet its obligations. In response, the company pointed to its recent announcement: “I refer you to the Company’s market announcement issued last Friday 29th August 2025 on the matter and which sets out the Company’s proposal to issue a new bond which will be exchanged with the existing one. The bond is supported by a strong asset package whose value materially exceeds the value of the bond.”

This means investors are effectively being invited to swap their existing holdings for a new bond issue, rather than receiving repayment upon maturity.

Advisors defend due diligence

Attention has also turned to the due diligence process at the time of issue.

Calamatta Cuschieri, acting as corporate advisors to the company, insisted that the 2021 bond had been subject to rigorous scrutiny: “In accordance with rules governing the application and approval process, comprehensive due diligence was undertaken prior to seeking (and obtaining) approval for bond issuance. Amongst other things, this due diligence encompassed both the promoters and shareholders, as well as the financial aspects of the bond issue. Given that the transaction was of a forward-looking nature and based on a proposed new business venture, additional assurances were sought and obtained as part of the process. These assurances consisted primarily of a security package (in favour of bondholders) comprising four residential properties, the aggregate value of which materially exceeds the value of the bond. Furthermore, it is to be noted that the Issuer engaged a leading local advisory firm to carry out independent financial due diligence.”

When asked whether Yacht Lift would be in a position to redeem the bond on schedule, Calamatta Cuschieri again referred to the company’s August market update.

Wider context

The Yacht Lift situation unfolds against a difficult backdrop for Malta’s bond market. Several issuers, including DIZZ Group, Central Business Centres, MMH, and Shoreline, have faced financial pressures in 2025. In contrast, HH Finance has just announced plans to raise €27 million in fresh bonds – underlining how conditions remain highly mixed for both issuers and investors.

For Yacht Lift’s bondholders, however, the immediate focus is whether to accept the rollover proposal or demand redemption as originally promised.