A publicly listed company that went silent on investors for over a year has now tacitly admitted it will be unable to repay a €2 million secured bond on time.
Trading in Yacht Lift Malta plc’s bond has been suspended by the stock exchange for over 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 flows problems and substantial debts.
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
The €2 million borrowed from investors was meant to be repaid by Saturday, September 13, however the company has now announced that instead of repaying the bond, it will be calling on investors to exchange their existing bonds for new bonds repayable by 2027.
A meeting about the bond exchange has been called for Friday, just one day before bondholders were meant to get their money back.
Trading suspended
Yacht Lift Malta’s bond was listed on the Malta Stock Exchange’s prospects trading facility, a higher risk market with a simplified admission procedure geared towards small businesses.
An MSE spokesperson told Times of Malta that the exchange had taken “decisive action” to suspend Yacht Lift Malta from trading to safeguard investor interests following the company’s failure to publish its audited financial statements.
“The suspension will remain in force until the company fully complies with its reporting requirements and restores transparency to the market,” the spokesperson said.
The MSE said it has spoken to Yacht Lift Malta plc’s directors about the imminent redemption of the €2 million bond.
It said the responsibility to ensure the provision of funds and the requisite details for bond redemption lies solely with the company
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.
Ian Borg (right) inaugurating the yacht lifting facility with company director Daniel Gatt.Financial troubles
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.”
At the time of the 2023 financial report, Captain Daniel Gatt and Giuseppi Christopher Farrugia were listed as the company’s executive directors, while Michaela and Valentina Lattughi were non-executive directors who sat on the company’s internal audit committee.
The Lattughis resigned their roles as directors in April 2025, according to corporate records.
Company figures show its directors were paid €76,800 in 2023, while non-executive director fees stood at €52,000.
In comments to Times of Malta, a company representative said Yacht Lift Malta acknowledges the importance of safeguarding bondholders’ interests and regrets that it has not consistently met regulatory expectations in terms of disclosures in the past
“With the audited financial statements for 2023 now published and available on the company’s website, and with a commitment to publish its audited 2024 accounts by the end of this year, the company is taking steps to strengthen its compliance and ensure greater transparency going forward,” the spokesperson said.
The spokesperson said its €2 million is supported by a “strong asset package whose value materially exceeds the value of the bond”.
Delays in financial reporting
In February 2024, Yacht Lift Malta put delays in publishing its financial statements down to the “aftermath” of the death of a new prospective shareholder, Chris Pullicino.
Pullicino, a former police officer who served in the homicide squad, was set to become a company shareholder and its director of finance.
Yacht Lift Malta said in a public announcement that following Pullicino’s death, the company had changed its accounting service provider, which caused delays to the financial reporting process.
Two months later, in its last set of communications to the market before going silent, Yacht Lift Malta said it had experienced delays in finalising the audit of its accounts.
It assured it was putting “significant effort” into resolving the matter in the shortest possible time frame.
The company also said its existing shareholders had made a €250,000 cash injection to support Yacht Lift Malta’s operations.