Melite Finance plc - Restructuring Plan

On 30 June 2020, Melite Finance plc published its Annual Report and Financial Statements for the year ended 31 December 2019. Amongst other things, the Annual Report highlights that due to the significant negative impact of ‘COVID-19’, the ability of Melite Finance to continue as a going concern is dependent on the successful implementation of a restructuring plan which, in turn, is based on the following measures:

• The rescission of 9 out of the total of 25 leases.
• Obtaining financing amounting to €1.1 million (€0.63 million in the form of an equity injection, and €0.47 million in the form of a shareholder non-interest bearing loan) from the shareholders of Melite Retail Limited which is the parent company of the Melite Finance Group. However, this is subject to the holders of the €9.25 million 4.85% Melite Finance plc 2028 bonds to accept a reduction in the bond interest rate to 3.5% with effect from the interest payment due in November 2021.
• Obtaining recourse to the COVID-19 Guarantee Scheme offered by the Malta Development Bank. In this respect, Melite Finance is in advanced discussions with its bankers for the issuance of a loan of €0.499 million for the purpose of funding the bond interest payment due to bondholders in November 2020.

Melite Finance noted that it expects to convene a meeting of bondholders in due course.