Mediterranean Maritime Hub Finance plc (MMH) has warned investors it will not publish its 2024 audited financial statements by the end-April deadline, raising fresh concerns about the company’s ability to repay a €15 million bond maturing next year.

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In a company announcement issued this morning, MMH said it expects to publish its annual report by the end of June 2025, citing ongoing refinancing negotiations with a “key financial institution in Malta” and prospective investors. The company admitted that until the refinancing is concluded, it cannot finalise its audited accounts.

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The development puts MMH under intense pressure, as failure to meet the Capital Markets Rules deadline is expected to trigger a suspension of trading in its bonds on the Malta Stock Exchange. More seriously, the delay highlights the growing risk that MMH may be unable to repay its bondholders — a situation that could deal a major blow to investor confidence in Malta’s corporate bond market.

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The shipyard operator, which in 2016 secured a 65-year concession over the former Marsa shipbuilding facilities, has struggled financially for years. That same year, it issued a €15 million bond to finance its operations, with repayment due in 2026. However, business has failed to meet expectations, and MMH has been actively seeking to transfer or exit the concession. Talks were even held with the government about withdrawing from the concession altogether, but no agreement was reached.

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In the meantime, MMH has increasingly sought to monetise the concession by leasing parts of the facility for unrelated activities, such as hosting the SiGMA conference and international TV productions like Big Brother. These uses are understood to be in breach of the original concession terms, which specify the land must be used for shipbuilding, ship repair, and related industries.

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Concerns over MMH’s financial health are not new. In its last published financial statements (AFS 2023), the company’s auditor already flagged “material uncertainty” about MMH’s ability to repay its bondholders. Today’s announcement only reinforces those fears.

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While MMH has pledged to make “every effort” to complete its audit and secure refinancing, retail investors now face the prospect of a rare — if not unprecedented — bond default in Malta’s market. The Malta Financial Services Authority (MFSA) will likely be watching developments closely, as a failure would risk shaking confidence in Malta’s broader capital markets, which have been heavily marketed to small investors in recent years.

The company said it remains available to answer queries from bondholders via its website.