Issue link: https://maltatoday.uberflip.com/i/1536968
3 maltatoday | SUNDAY • 29 JUNE 2025 NEWS Cassola claims that investors were misled in bond prospectus untrue: MIDI plc MIDI plc has rejected claims that its 2016 €50 million bond prospectus misled investors. In a company announcement MIDI plc said the document met regulatory standards and clearly disclosed potential project risks, while also being backed by provisions for dead- line extensions under its devel- opment contract for Manoel Island. The response followed an opinion piece by Momentum chairperson Arnold Casso- la, published in MaltaToday, which questioned the legality and transparency of MIDI's ac- tions over the past decade and suggested the company could be in breach of its agreement with the government due to missed deadlines on the Ma- noel Island development. Cassola argued MIDI raised funds through a public bond issue while still lacking the per- mits, masterplan, and financ- ing required for the ambitious project, warning that the land could legally revert to the gov- ernment if substantial comple- tion had not been achieved by March 2023. He also claimed that none of the €50 million raised was earmarked for the project itself. MIDI responded by stating risk disclosures in the 2016 prospectus were a legal obliga- tion designed to protect trans- parency and were not indica- tive of an inability to mitigate such risks. The company said the Deed of Emphyteusis governing the project, and available for in- spection as part of the prospec- tus, contains automatic exten- sions for delays outside MIDI's control, including permit-re- lated hold-ups and archaeolog- ical discoveries. "These clauses (Articles 13, 16, and 17) allow for extensions to the substantial completion deadline in cases of permit de- lays, external events, or archae- ological findings," the company stated, adding that the March 2023 date cited in the article does not account for these le- gally established extensions. MIDI cited several setbacks since 2017, including five years of archaeological investigations conducted under the supervi- sion of the Superintendence of Cultural Heritage, which re- sulted in a development exclu- sion zone covering 22,000sq.m of Manoel Island. The company added: "The article in question highlights only one of a number of delays encountered by the Company, namely the FAA's appeal with respect to the Outline Devel- opment Permit approved in March 2019". FAA had successfully ap- pealed the first outline permit, leading to its annulment after a conflict of interest was flagged in the drawing up of the Envi- ronment Impact Assessment. A second appeal against a new EIA was later definitively re- jected by the Appeals Court in May 2023, paving the way for an outline development permit to be issued. The company maintains that its interpretation of the deed entitles it to at least a 10-year extension beyond the original March 2023 deadline, covering both recent and historical de- lays, including issues that arose prior to 2013 due to difficulties at Tigné Point. Addressing criticisms of its financial reporting, MIDI said it has consistently stated in its audited statements that project timelines were subject to ex- tension due to conditions out- side its control. MIDI concluded the an- nouncement by reaffirming its commitment to "accuracy and transparency" in public dis- course. Government has signalled its intention to take back Manoel Island, following a petition with 29,000 signatures request- ing the area be returned to the public as a national park. Talks between the govern- ment and MIDI are underway to find an amicable out-of- court settlement. KURT SANSONE ksansone@mediatoday.com.mt