Hugo Chetcuti’s bond finance company to continue operations

The finance company that raised capital for Hugo Chetcuti’s new Paceville hotel through a bond issue said the board will continue to operate

Paceville entrepreneur Hugo Chetcuti had his €5 million bond issue approved by the MFSA and admitted to the Stock Exchange earlier this year
Paceville entrepreneur Hugo Chetcuti had his €5 million bond issue approved by the MFSA and admitted to the Stock Exchange earlier this year

HH Finance plc has reported that the current members of the board will continue to operate despite the death of its chairman, Hugo Chetcuti.

In a company announcement on the Malta Stock Exchange, HH Finance formally announced the “tragic death of its chairman Mr Hugo Chetcuti”.

The board expressed its condolences to Chetcuti’s family, adding it will “continue to operate with its current members”.

HH Finance was formed earlier this year when Chetcuti roped in the expertise of former Bank of Valletta CEO Tonio Depasquale and former MIDI CEO Ben Muscat, as independent directors.

The finance company was set up to raise capital through the issue of a €5 million bond at a coupon of 5%, redeemable between 2023 and 2028.

READ ALSO: Paceville boss Hugo Chetcuti’s €5 million bond gets stock market approval

The primary activity of the company was to acquire and subsequently generate rent from a new hotel development in Paceville.

The hotel had to be acquired by HH Finance from Hugo’s Hotels Ltd for a consideration paid party by the bond and partly by subordinated loans.

Hugo's hotel is just one of the myriad of establishments the entrepreneur owned in Malta's entertainment capital
Hugo's hotel is just one of the myriad of establishments the entrepreneur owned in Malta's entertainment capital

Chetcuti owned a substantial chunk of real estate in Paceville, making him the undisputed entertainment king.

He died last week, six days after suffering a knife attack by a former employee.

Serb national Bojan Cmelik has been charged with the murder. CCTV footage seen by police shows Cmelik had been lying in wait for Chetcuti to emerge from Hugo’s Seafood and Cocktails, where he had been testing out menu items.

Cmelik approached Chetcuti as he stepped out, and then stabbed him three times while the men embraced.

READ ALSO: Hugo Chetcuti: The legacy and the entertainment empire he leaves behind

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