The Turkish contractor which issued a garnishee order to Shoreline Mall has sent us a right of reply about our investigations on the illiquid and potentially bankrupt company.
We are publishing this right of reply here for legal reasons but we find this unnecessary given that we have never blamed Koray for Shoreline’s mess. On the contrary, Shoreline’s problems go even much deeper and contrary to the very superficial coverage by the other press on the subject, we have provided a fully-fledged financial investigation.
You can find our investigation here, here and here.
Below is Koray International’s right of reply.
Statement by Koray Global Malta Limited regarding Shoreline Mall plc’s restructuring proposal
Koray Global Malta Limited (“KGML”) considers it necessary to issue this statement following the recent communication by Shoreline Mall plc to its bondholders regarding its proposed debt restructuring and extension to its bond repayment date.
Until now, KGML has deliberately refrained from commenting publicly on its disputes with Shoreline entities, as these disputes are the subject of ongoing legal proceedings. However, Shoreline has chosen to publicly attribute its current restructuring efforts principally to a garnishee order obtained by KGML from the Maltese courts. By doing so, Shoreline has drawn KGML into the public discussion. KGML therefore considers it appropriate, and indeed necessary, to provide bondholders and the public with certain factual clarifications.
The information contained in this statement is necessarily summary in nature. KGML has already provided substantially more detailed information, together with supporting documentary evidence, to the Malta Financial Services Authority (“MFSA”). It is for the MFSA, in the exercise of its statutory functions, to determine whether any regulatory action is warranted.
KGML is currently involved in arbitration proceedings against Shoreline entities. Those proceedings arise from the Shoreline project, which, from a very early stage, was affected by the financial difficulties experienced within the Shoreline group.
Despite repeated contractual breaches by Shoreline, KGML continued performing its contractual obligations for an extended period in an effort to ensure the successful completion of the project. It was only when Shoreline’s financial position rendered further performance impossible that KGML was compelled to terminate the relevant contract for cause.
The garnishee order referred to by Shoreline was subsequently granted by the Maltese courts as a lawful interim precautionary measure intended solely to protect KGML’s rights pending the outcome of the legal proceedings.
KGML respectfully rejects the suggestion that this garnishee order is the principal cause of Shoreline’s present financial situation.
The garnishee order has been in force since mid-2024 and was eventually extended to and served on several tenants that operate from the Shoreline Mall in June 2025. Since then, the total rental income collected and deposited in the court registry amounts to approximately €524,002.38. This figure is, in commercial terms, relatively modest and does not support the proposition that the garnishee order, by itself, could explain Shoreline’s current financial position.
The figures instead point towards two possible explanations. Either the commercial performance of the project has been significantly weaker than represented, or rental income has been channelled outside the Shoreline group of companies subject to the garnishee order. Should the latter prove to be the case, it would raise important legal issues concerning compliance with the Maltese court’s order. KGML is taking all appropriate legal steps to ensure the full and proper implementation of the garnishee order and to safeguard its rights.
In any event, KGML’s position has consistently been that Shoreline’s financial difficulties substantially pre-date both the legal dispute and the garnishee order. Indeed, it was precisely those financial difficulties that ultimately made continuation of the project impossible and led to the termination of the construction contract.
KGML has also informed the MFSA, with supporting documentation, of information indicating that Shoreline group entities had represented the existence of alternative financing arrangements specifically intended to address the bond repayment obligations. This information has likewise been placed before the competent regulatory authorities together with all relevant supporting material.
Accordingly, KGML considers that the ongoing dispute between KGML and Shoreline should properly be viewed as a consequence of Shoreline’s financial difficulties rather than their cause.
KGML regrets having been drawn into the public discussion surrounding Shoreline’s restructuring proposal. Nevertheless, given the statements made publicly by Shoreline regarding KGML’s garnishee order, KGML considered it important that bondholders receive an accurate factual context.
Having provided the relevant information and supporting documentation to the MFSA, KGML is confident that the competent authorities will take such steps as they consider appropriate in accordance with their statutory responsibilities.
Koray Global Malta Limited
Website Editor
Historian and Publisher
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