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The Maltese Herald

Alec Mizzi of Mizzi Group confirms that the government bailed-out MIDI over bond payments: Owen Bonnici says he doesn’t care

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by

Mark Camilleri
in ,

During an interview with Il-Każin, Alec Mizzi confirmed that the government bailed-out MIDI with a €42 million payment that enabled the company to have enough liquidity to pay its bondholders. MIDI had an outstanding €47 million bond payment due this year but no liquidity and cash reserves to pay bondholders.

MIDI was in dire financial straits leading to the company to sale many of its assets. Eventually MIDI failed to honour its obligations to develop Manoel Island enabling the government to take over the concession.

Minister Owen Bonnici, who led the negotiations with MIDI said that he doesn’t care whether MIDI was insolvent or not. He then continued to say that he doesn’t believe that MIDI was insolvent.

MIDI did not have enough assets and cash to meet its obligations and you can look at the accounts and the relevant analysis here.

You can view the interview with Minister Bonnici here.

Comments

4 responses to “Alec Mizzi of Mizzi Group confirms that the government bailed-out MIDI over bond payments: Owen Bonnici says he doesn’t care”

  1. Joe Bharwani avatar
    Joe Bharwani

    Marru tajjeb il midi..il bobby hallashom min flus il.poplu

    Reply
  2. Ir-ruħ ta' Vilhena avatar
    Ir-ruħ ta' Vilhena

    Mark huwa impossibbli inkunu ċerti jekk id-deal ta’ 42 miljun kienx favur il-poplu jew favur il-MIDI. Jekk rajt l-intervista, ix-shareholder li tkellem qal li 42 miljun kienu inqas minn kemm kien haqqhom.

    Jien naħseb li l-MIDI kienu JIDHRU insolvent. Huma riedu JIDHRU hekk sabhiex jieħdu l-bailout. Hemm modi kif titrasferixxi jew taħbi l-flus u l-assi ħalli ma jidhrux fuq il-kontijiet.

    Mill-biegħ tal-propjeta f’ Tigne, fuq dawn is-snin kolla, timmaġina li ma għamlux biżżejjed profitt? Timmaġina li ma kellhomx biżżejjed flus biex jagħmlu l-kawża l-qorti?

    Jekk il-gvern kien jemmen li l-MIDI kella biżżejjed flus biex tiġġieled (jew xtaq jagħti bailout), mela Owen huwa korrett, is-‘solvenza’ tal-MIDI ma tidħolx fin-negozjat u għalhekk “ma jimpurtahx”.

    Fl-aħħar mill-aħħar, l-għażla kienet bejn inħallsu biex nieħdu l-gżira issa, jew nippruvaw ma nħallsux u naghmlu xi 10+ snin qorti (+spejjeż).

    Jekk trid tkun ċert, ibda irriċerka kemm nefqu u qalgħu flus fuq 30 sena, pero din hija missjoni impossibbli. Min jaf x’ pagi kellhom?

    Reply
  3. Creating a dangerous precedent in markets by bailing-out toxic garbage - The Maltese Herald avatar
    Creating a dangerous precedent in markets by bailing-out toxic garbage - The Maltese Herald

    […] only excuse that Minister Owen Bonnici could conjure up to justify the Labour government’s massive bailout to MIDI was that, if the government did not bail out MIDI, bondholders would have remained […]

    Reply
  4. Manoel Island officially handed over to the Government - The Maltese Herald avatar
    Manoel Island officially handed over to the Government - The Maltese Herald

    […] Island has officially been handed over to the government after a deal involving a €43 million bail-out for the shareholders of the company. The bailout enabled the company to pay an outstanding €47 million bond. MIDI itself admitted in […]

    Reply

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