Troubled MMH 'optimistic' over investor deal to secure €15m bond repayment
Maritime services firm says investment lifeline subject to due diligence and government approval
A maritime services company with a looming €15 million bond repayment is "optimistic" that it has found investors willing to offer it a financial lifeline.
Mediterranean Maritime Hub announced in its annual report and financial statements that the investors have deposited €1 million in escrow as a sign of commitment to the deal.
Importantly for bondholders, the potential deal will see further cash injection into the company, with specific funds being hived off to repay the €15 million bond due in October 2026.
The deal will see the new investors buy 49% of MMH, with a targeted completion date of April 2026, subject to due diligence and government authorisation.
MMH was given a government concession in 2015 to operate the former shipbuilding site in Marsa as a services hub for the oil and gas industry.
The potential change in the company's ownership structure will therefore need government sign off.
Although the deal is yet to be finalised, MMH said it is "optimistic" the contract will be concluded, allowing the company to continue functioning.
MMH made a loss of €167,000 in 2024, and the company's annual accounts and report make it clear that in order to survive, financials support from shareholders, bondholders and financial institutions is vital.
Trading in the bond was suspended in May after the company failed to publish its latest audited accounts.
These account were finally published on Thursday.
The company has aknowledged that the site handed to them by the government ten years ago "remains a project in development," and has yet to be used to its full potential.
It said additional investment is needed to unlock this potential.
In May, backbench Labour MP Edward Zammit Lewis called on the government to tightly control land concessions given to private developers to prevent abuse.
Zammit Lewis, a former justice minister, urged the government to implement stronger structures and allocate proper resources to ensure that companies and developers granted concessions comply with the conditions, and that if they don’t, the land is reclaimed.