Dizz bondholders face crucial vote days before €8m repayment

Dizz Group has called a bondholders meeting nine days before an €8 million repayment deadline, seeking approval to change guarantees after a critical sale transaction changed structure.

The meeting concerns D Shopping Malls Finance’s €7.5 million bonds due in 2028. Proceeds from the transaction were earmarked to help repay a separate Dizz Finance bond on 7 October.

Originally the deal involved transferring part of the lease over the Sliema Wanderers commercial complex, valued at €9.5 million. The buyer now intends to purchase shares in D Shopping Malls Limited, which guarantees the 2028 bonds, instead of taking the lease.

Dizz wants investors to approve replacement or additional guarantees from other group companies. The proposed new guarantors are Dizz Manufacturing Limited and The Retail Operations Mall Ltd.

Assets intended to support the arrangement include D Hub, an office property in Mrieħel independently valued at €17 million, the Centerparc lease and a Qui-Si-Sana apartment. D Hub replaces the D Mall lease in the package.

The Shift reported in July that the lease transaction had not been confirmed as completed in the group’s latest financial disclosures. Dizz disputed that its ability to meet obligations depended on any single transaction.

The group insisted the repayment of the 2026 bond in October remains on track. The resolution also allows other entities to provide support subject to final documentation.

For bondholders, the meeting days before the deadline raises questions about the group’s liquidity and the risk profile of the bonds. The shift from a lease transfer to a share purchase alters the collateral backing the guarantees.