MIDI plc has confirmed that any compensation it may receive from the termination of its Manoel Island concession will be primarily used to repay its outstanding bond obligations. The update came as part of the company’s publication of its Financial Analysis Summary (FAS) for the 2025 financial year, which was issued alongside a clarification on the significant impact of recent developments concerning the Manoel Island project.

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The company noted that while the FAS is being published after these developments, the report itself does not reflect them due to the high level of uncertainty currently surrounding the situation.

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Specifically, the FAS does not account for the recent withdrawal of Government support for the Manoel Island development, nor the declarations made by the Government expressing its intention to convert the site into a national park. It also excludes the implications of a judicial letter sent to MIDI by the Government and the Lands Authority, alleging breach of contract and threatening the rescission of the temporary emphyteusis agreement governing the site.

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MIDI has formally replied to the judicial letter, firmly denying any breach of its obligations. It has also initiated discussions with the Government aimed at reaching an equitable settlement, including the possibility of voluntarily terminating the concession.

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All forward-looking statements contained in the FAS should be interpreted in this context, with the company warning that the developments may materially impact its future performance, financial position, and ability to pursue its stated strategies.

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Prior to these events, MIDI had planned to refinance part of its outstanding bond through a new bank facility, with a term sheet already in hand. That plan was closely tied to ongoing progress on the Manoel Island project, including the introduction of a strategic investor. With the Government’s position now clear, the company has confirmed that the project and its related investor plans can no longer be pursued.

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The company’s financing strategy is now under review and will depend on the outcome of the discussions with Government. However, MIDI has made it clear that any compensation received from the termination of the Manoel Island concession would be applied first and foremost to meet its bond repayment obligations.

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MIDI’s Board said it will continue to monitor the situation and will provide the market with further updates as material developments arise.

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