Shoreline bondholders approve extension of €14 million repayment deadline
Company gets two-year breathing space while bondholders secure improved terms
Shoreline Mall’s bondholders have voted to give the company another two years to repay a €14 million debt that was to fall due on August 1, the company has announced.
A resolution to extend the redemption date passed with 95.65% approval at a bondholders’ meeting held on Tuesday,. The repayment date will be moved to August 1, 2028.
In exchange for the delay, bondholders secured improved terms, including a coupon rate increase from 4 per cent to 6.5 per cent per year, accruing from July 31, 2026.
Holders will also receive a one-time commitment fee of 0.25 per cent of the bonds’ face value, alongside the August 1 interest payment.
The company also committed to a series of protections that will remain in place until the bonds are redeemed.
Chief among them, Shoreline Mall promised not to repay or lend money to other companies within the Shoreline Group, so as to prevent cash from leaking to related parties before bondholders.
Shoreline Residence Limited and its parent, Shoreline Holdings Limited, will also indemnify the company against any claims brought by Turkish contractors Koray Global Malta Limited.
The litigation is the reason Shoreline Mall asked for the extension in the first place. The company has been hit with a precautionary multi-million-euro asset freeze, known as a garnishee order, which it says has hindered its ability to complete the bond refinancing on time.
Koray Global Malta Limited is disputing this claim.
Shoreline Mall filed a court application to substitute the garnishee order with a guarantee over real estate assets totalling €44 million held by Shoreline Residence Limited. International arbitration proceedings have also been launched and are expected to be concluded by May 2027.
Subject to the garnishee order being lifted, the company told bondholders it will establish a dedicated sinking fund, under the exclusive control of the security trustee, to be used solely to redeem the bonds.
The fund would receive the net proceeds from the sale of high-end villas at Shoreline and net rent from the mall’s tenants.