By Jacob Borg
Copyright timesofmalta
Holders of a €2 million bond issued by Yacht Lift Malta have “approved” an exchange of their existing bonds for new bonds repayable by 2027. Investors were asked by the company to approve the exchange of their bonds in a vote held just one day before Yacht Lift Malta was meant to repay the €2 million it owed bondholders. The bond exchange means Yacht Lift Malta, which is facing financial difficulties, will have another two years to repay the bond, which was originally scheduled for repayment by September 13 at the latest. Yacht Lift Malta said in a company announcement that the motion was approved by the bondholders “present in person or by proxy” during a vote held on September 12. Trading in Yacht Lift Malta plc’s bond has been suspended by the stock exchange for more than a year and a half over its persistent failures to publish its audited accounts, in line with transparency requirements. The company borrowed €2 million from the public to finance the purchase and installation of a floating dry dock platform based at Marina Di Valletta in Pietà. In 2021, the dock was inaugurated by then transport minister Ian Borg, who said the investment in the yacht lifting service had attracted foreign boat owners from around the Mediterranean and Europe to Malta. Four years later, Yacht Lift Malta financial statements and public announcements indicate significant cash flow problems and substantial debts. Yacht Lift Malta’s financial statements for 2023, which were belatedly published this month, shows it made a net loss of €455,437 that year, and has net liabilities of €1.6 million. The company’s external auditors flagged how Yacht Lift Malta faces significant doubt about its continued operations due to its losses and liabilities. Auditors were also unable to verify €1 million worth of payments within the company’s accounts, as Yacht Lift Malta’s management had not carried out the necessary reconciliations in its accounting system, and certain payments were sometimes made “directly from other sources”.
