Koray Global Malta Limited (KGML) has publicly disputed Shoreline Mall plc's explanation for seeking a two-year extension to the maturity of its €14 million bond. The company rejected Shoreline's assertion that precautionary garnishee orders obtained by the contractor are the principal reason behind the restructuring proposal, insisting the sums frozen through the court order are "relatively modest" and cannot explain Shoreline's financial position.

KGML argued that Shoreline's financial difficulties pre-date both the legal dispute and the garnishee order, maintaining that the dispute should be viewed as a consequence of the company's financial position, rather than its cause. The contractor pointed out that if rental income has been channelled outside the Shoreline group of companies subject to the garnishee order, this could raise legal questions regarding compliance with the Maltese court's order.

The exchange comes after Shoreline asked bondholders to postpone repayment of its €14 million bond until 2028, citing complications in refinancing due to the ongoing legal dispute. KGML claimed it had already submitted detailed information and supporting documentation to the Malta Financial Services Authority (MFSA), which will determine whether any regulatory action is warranted.

The dispute stems from construction works carried out as part of the Shoreline development, with arbitration proceedings arising after repeated contractual breaches by Shoreline entities, according to KGML. The company claimed it continued fulfilling its contractual obligations for an extended period before terminating the contract when Shoreline's financial position allegedly made further performance impossible.