Issue link: https://maltatoday.uberflip.com/i/1529157
2 maltatoday | SUNDAY • 10 NOVEMBER 2024 NEWS CONTINUED FROM PAGE 1 With MMH Holdings hav- ing failed to obtain regulatory clearance to sell their con- cession last year to interested parties, and a hefty €15 mil- lion bond that is nearing re- payment, the government has agreed to allow INDIS to start talks that can deliver a "fair and balanced" outcome for both sides. MMH was already seeking a cash injection from prospec- tive investors due to the state of its equity, when auditors in 2022 warned of "a material un- certainty… that may cast sig- nificant doubt on the Group's ability to continue as a going concern." Both parties – Angelique Abe- la on behalf of MMH Holdings, and INDIS executive chairman Jean Pierre Attard – signed a memorandum for the start of the talks. Over the last five years, MMH had made repeated representa- tions to the government to al- low new business partners or extend the terms of the conces- sion it had publicly competed for, so as to allow a wider range of business activities on site. But rival business groups last year also complained to INDIS that MMH was allowing servic- es that already do not respect its concession for an oil and gas servicing centre – such as host- ing mega-conferences in its shipbuilding sheds or servicing yachts. Now it turns out that the gov- ernment is backing MMH's concerns that the original concession's terms might no longer be in line with current economic realities in the mar- itime industry. A government source told MaltaToday that not all Cab- inet members were in agree- ment at seeing the administra- tion heading towards a 'bailout' that would allow MMH a pain- less exit from a concession it had long been attempting to jettison to third parties. Failed share transfer MMH – whose ultimate ben- eficial owner is Paul Abela of Abel Energy – was granted the 65-year land concession by industrial parks regulator INDIS in 2016, taking over a 165,000sq.m site, which in- cludes 1,200m of quayside and engineering workshops cover- ing 30,500sq.m. The area strategically abuts onto the Grand Harbour and currently operates as an op- era-tions and supply chain sup- port base for the Mediterrane- an oil and gas industry. But since 2018, MMH start- ed diversifying into yachting maintenance and vessel-hoist- ing, and even hosting confer- ences. In 2023 the company an- nounced a prospective share transfer of a 70% stake to Vir- tu Holdings and LTV Devel- opments. Virtu owns Virtu Ferries, operators of the long- est-serving catamaran service between Malta and Pozzallo, while LTV is owned by Fran- cis Busuttil & Sons Ltd, also known as Ta' Bandallu, a major importer of food and groceries. The share transfer was re- quired for the restructuring of the MMH group's capital, and as stated by auditors, "to meet its financial commitments in the medium term." But the buyers were seeking a change in concession terms that would allow a wider range of services to be offered other than the oil and gas services MMH is contractually bound to provide. Those changes had to be ap- proved by the government reg- ulators, in line with MMH's obli-gations arising from the public deed entered into with the government. But another player in the maritime field, Manoel Island Yacht Yard, made its own rep- resentations to INDIS over the attempted share transfer, in a pointed letter alleging breach- es in MMH's concession terms. MIYY said that while the land at the Marsa shipbuilding area had been granted to MMH for oil and gas services, instead the company was marketing itself as a boat park for yachts de- spite these services not permit- ted by the original deed. MIYY told INDIS it was al- lowing MMH full impunity to breach the deed, which was af- fecting its own business at Ma- noel Island, also a lands con- cession granted in a public call for offers back in 2010. Earlier this year, MMH an- nounced that Virtu and LTV, along with chairman Paul Ab- ela, had decided not to renew the terms of the conditional share purchase agreement. INDIS to start talks for 'fair and balanced' outcome for both sides The MMH site (marked in yellow above): The government is backing MMH's concerns that the original concession's terms might no longer be in line with current economic realities in the maritime industry