The company in a dispute with Shoreline Mall plc has zero assets in Malta and has not filed annual accounts since 2021, with the only accounts ever filed, reporting an insolvent position, according to Shoreline’s chairman Ryan Otto.
Speaking to The Corporate Times, Otto said that Shoreline’s ability to refinance a €14 million bond due in August 2026 remains constrained by a court-ordered garnishee affecting access to tenant rental income.
“The key issue remains the garnishee order which directly prevents Shoreline from accessing rental income, despite the strength of the underlying asset and operations,” he said.
Otto said the constraint is procedural rather than operational, and that trading performance at the mall remains resilient and in line with expectations.
“The operational performance of the mall remains strong, and this is not a reflection of underlying asset quality,” he said.
The company said it is pursuing its dispute with Koray Global Malta Limited through Maltese court proceedings and arbitration in Geneva.
Otto maintained that Shoreline is not a contractual counterparty to the claimant in relation to the arbitration agreement and it is contesting the scope and impact of the claims being made against the Group.
Despite the dispute, Shoreline points to a significant asset base comprising a shopping mall and parking facilities valued at approximately €80 million, alongside €6 million of development inventory. Otto said this materially exceeds outstanding bond liabilities and supports a range of refinancing and repayment pathways once the cash restriction is resolved.
A jointly appointed engineer has certified a final account supporting the underlying construction valuation framework, while related proceedings over guarantees continue.
Otto said the company remains confident that resolution of the legal constraints would normalise cashflows and restore full refinancing optionality ahead of the 2026 maturity.
