Scully Royalty Ltd (SRL)

merkantibank from Gemini
Based on the forum discussion you are viewing and recent search results, here is the context regarding Merkanti Bank and Scully Royalty Ltd. (SRL):
1. The "Shift" Article (Merkanti Bank Closing)
The user "steve" is correct. There is a report from The Shift News dated December 2, 2025, titled Maltese bank owned by US group to wind down after a decade of operations.
• What is it? Merkanti Bank is a Malta-based subsidiary of Scully Royalty Ltd. (SRL).
• The News: The bank is reportedly preparing to cease operations and surrender its banking license.
• Details:
• Employees have reportedly been issued termination notices.
• The move is described as a "strategic business decision" to streamline costs and potentially convert the entity into an unregulated company.
• The report states the closure is not expected to impact the listed bonds of its parent, Merkanti Holding plc, as they are secured by overseas assets.
2. Raiffeisen Bank Litigation
The user "Larry" mentioned an update regarding Raiffeisen Bank. This refers to a long-running legal battle involving Scully Royalty.
• The Case: Raiffeisen Bank International AG v Scully Royalty Ltd, filed in the Cayman Islands. Raiffeisen alleges that Scully engaged in asset stripping to avoid paying debts owed under a guarantee.
• Recent Update (Nov 2025): There was a court decision around November 13, 2025, in the Cayman Islands. The court granted further asset disclosure orders against Scully Royalty entities to police "worldwide freezing orders."
• Essentially, the court is forcing Scully to reveal more information about its assets to ensure they aren't hiding anything while the legal battle continues.
Summary for your investment context: The "sparks" mentioned in the forum likely refer to these two major events happening simultaneously: the closure of their banking arm (Merkanti) and increased legal pressure from Raiffeisen Bank to disclose assets.
Would you like me to look for the specific details of the Raiffeisen court order or more financial data on Merkanti?
yes
This is a significant moment for Scully Royalty Ltd. (SRL) shareholders. The "sparks" mentioned in the forum are coming from two major, simultaneous events: the closure of their banking arm and a serious escalation in their legal battle with Raiffeisen Bank.
Here are the specific details you requested regarding the court order and the bank's financials.
1. The Legal "Sparks": Raiffeisen Bank vs. Scully Royalty
User "Larry" is correct. There was a major court judgment in the Cayman Islands just last month.
• Case Update (Nov 13, 2025): The Grand Court of the Cayman Islands issued a decision in Raiffeisen Bank International AG v Scully Royalty Ltd.
• The Ruling: The judge granted further asset disclosure orders against Scully Royalty. This is a policing measure to enforce an existing "Worldwide Freezing Order" (WFO).
• Why this matters:
• Suspicious Activity: The court found a "real risk" that Scully was moving assets to hide them. Specifically, they noted a corporate restructure where a subsidiary was dissolved and merged, and an "unexplained share transfer" took place.
• Tightening the Net: The court rejected Scully's argument that they were complying with the monetary "cap" of the freeze. The judge ruled they must disclose all substantial assets so Raiffeisen can monitor them, effectively stripping away Scully's ability to move money in the dark.
• Core Allegation: Raiffeisen alleges Scully engaged in a "fraudulent conspiracy" to strip assets from its former parent company to avoid paying debts.
2. The "Shift" Article: Merkanti Bank Closing
The user "steve" refers to a report that Merkanti Bank (SRL's Malta subsidiary) is winding down. The financial data supports the idea that this is a strategic exit from a declining asset.
• The Status: Merkanti Bank is reportedly ceasing operations and surrendering its banking license to become an unregulated entity.
• Financial Health (Why close it?):
• Declining Profits: In the most recent reporting period (2024), the bank's profit after tax crashed to €415,502, down significantly from €2.4 million the previous year.
• Shrinking Assets: Total assets dropped from €58.6 million to €47.6 million.
• Strategic Shift: The bank had previously tried to acquire another bank (Sparkasse) but failed. Without that growth, and with rising compliance costs, the bank became less viable.
• Bondholder Note: If you hold the Merkanti Holding plc bonds, note that they are being restructured. The maturity is being extended by 7 years (to 2033), but the interest rate is increasing to 5.7% (up from 4%) to compensate for the risk.
Summary of "Sparks"
The "sparks" are likely the combination of Raiffeisen forcing Scully to reveal its hidden assets (legal pressure) at the exact same time Scully is liquidating/closing its banking arm (financial pressure).
Would you like me to see if there are updated dates for the next hearing in the Cayman Islands, or search for the specific terms of the new Merkanti bond offer?
yes
Here is the detailed information you asked for regarding the Raiffeisen court order and the Merkanti bond terms.
1. The Legal Update (Nov 13, 2025)
The "sparks" mentioned by user Larry on the forum refer to a specific judgment handed down just last month in the Cayman Islands.
• Case: Raiffeisen Bank International AG v Scully Royalty Ltd
• Date of Decision: November 13, 2025
• The Ruling: The court issued a "Decision on Further Asset Disclosure Orders".
• What this means: The court has ordered Scully Royalty (SRL) to reveal more specific details about their assets. This is typically done to "police" a freezing order—essentially, the court is tightening the leash to ensure Scully isn't hiding or moving assets that should be frozen while the main lawsuit continues.
• Timeline: The litigation is ongoing. Earlier judgments noted that despite years of legal battles, it could take until 2027 for the main claims to fully reach trial, as the case involves complex allegations of "fraudulent conspiracy" and "asset stripping".
2. Merkanti Holding Bond Terms (New Structure)
The "shift" article and forum rumors about Merkanti closing are linked to this restructuring. If you hold the bonds (or are tracking SRL's debt), here are the new terms approved in July 2024 that are now in effect:
• New Interest Rate: Increased to 5.70% (previously 4.00%).
• New Maturity Date: Extended to August 12, 2033 (previously 2026).
• Bonus Payment: Bondholders on record as of July 2024 received a one-time 0.80% bonus payment.
• Security: The company claims the bonds remain secured by the same assets (including German industrial parks), even as the banking subsidiary (Merkanti Bank) winds down its license.
Key Takeaway for Shareholders: The company is effectively buying itself more time (7 extra years) to pay back this debt, while paying a higher interest rate to keep bondholders happy. Simultaneously, the Cayman court is forcing them to be more transparent about where their money is hiding.
Would you like me to check if there are any upcoming deadlines for the "asset disclosure" ordered by the court?
yes
•
That's a great follow-up question. The most recent information provides details on the asset disclosure order but does not specify an immediate deadline, and while the major ruling occurred last month, the overarching trial is still moving slowly.
Here are the specific details on the legal deadlines and the updated Merkanti bond terms:
1. ⚖️ Raiffeisen Bank Asset Disclosure Status
The legal action in the Cayman Islands has been highly active, but a precise future hearing date for the main trial is not yet public.
• Recent Ruling: The most recent major judgment was issued on November 13, 2025. This order forces Scully Royalty Ltd. (SRL) to provide further, updated asset disclosure to police the existing Worldwide Freezing Order (WFO).
• The Disclosure Mandate: The court is enforcing disclosure of all substantial assets, even those exceeding the cap on the freezing order, to prevent the risk of assets being dissipated and any future judgment remaining unsatisfied. This means SRL is currently under intense court pressure to reveal where its money is.
• Next Trial Date: The case has involved multiple appeals and jurisdiction challenges. Due to its complexity (allegations of fraudulent conspiracy), the main trial remains a lengthy process, and an immediate next public hearing date for the trial itself is not specified in the recent summaries.
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2. 📝 Merkanti Holding Bond Terms (New Structure)
The new bond terms for Merkanti Holding plc (parent of Merkanti Bank) were approved by bondholders in July 2024 and are now the official structure.
Detail Old Term (Due 2026) New Term (Approved July 2024) Source
Maturity Date August 12, 2026 August 12, 2033 (Extended by 7 years)
Interest Rate (Coupon) per annum per annum (Effective from August 12, 2024)
Outstanding Amount €25,000,000 €25,000,000
Bonus Payment None one-time bonus payment on nominal value (Paid August 12, 2024)
This restructuring gives Merkanti Holding plc much longer to repay the debt while rewarding bondholders with a significantly higher interest rate and an upfront bonus. The market ticker for this new bond is sometimes listed as MERKTI 5.7 08/12/33.
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Would you like me to look into the specifics of the German industrial parks that currently serve as collateral for these bonds?
yes
•
That is an important question. The security of the bonds is tied to these German real estate assets, which makes them a key part of the Merkanti Holding plc structure, especially as the banking arm is reportedly winding down.
Here are the specifics regarding the German industrial parks that collateralize the Merkanti Holding bonds:
🇩🇪 German Industrial Real Estate Collateral
Merkanti Holding plc, the bond issuer, owns two "Property Companies"—Merkanti (A) International Limited and Merkanti (D) International Limited—which operate in the industrial real estate sector in Germany.
• Property Type: Industrial real estate leasing sector.
• The Key Asset: The most prominent asset is a portion of the Industrial and Commercial Park Altmark located in Arneburg, Germany.
• This is the largest industrial and commercial park in the German state of Saxony-Anhalt.
• Merkanti's portion is a piece of land measuring approximately 1.67 million square meters.
• Security for Bonds: The €25 million bond is secured by German Law Mortgages on these properties and Pledges of Shares in the Property Companies, which are duly registered in the German land register.
• Financial Contribution: The profits from the German Real Estate companies have become a significant source of income for the group, mainly due to year-end revaluations. In 2024, the profit contribution from the German Real Estate companies was approximately €1.99 million.
💰 Current Valuation & Rental Income
The value and performance of these industrial properties are the core financial support for the extended bond terms:
• Recent Valuation: The property companies' assets were recently valued at €41.8 million (as of 31 December 2024).
• Rental Income: They yield a combined rental income of approximately €1.7 million per annum.
The bonds are secured by these assets, making the German real estate operations a central element of the holding company's business model, particularly as the Merkanti Bank segment's profitability has declined.

5.70

TORONTO, ON / ACCESSWIRE / September 20, 2024 / Tacora Resources Inc. ("Tacora"), a high-grade iron ore concentrate producer announced today that it has closed its sale transaction led by an investor group consisting of Cargill Incorporated, Millstreet Capital Management, O'Brien-Staley Partners and Brigade Capital Management LP.

"The closing of this transaction marks a pivotal moment and a transformative phase for Tacora's future," said President and Chief Executive Officer Brian Penney. "Our entire team is excited to have the resources to execute our production and investment plans. With a new and powerful investor group, we look forward to driving value for all stakeholders as we execute our multi-year capital investment and ramp-up plan to achieve historic name-plate production of 6 million tonnes per annum of high-grade iron ore concentrate."

Tacora emerges from the Companies' Creditors Arrangement Act (Canada) ("CCAA") process with a $250 million equity injection, a strengthened balance sheet, and an improved business plan. As a result of the CCAA restructuring, Tacora benefits from several new competitive advantages:

Tacora Resources Inc. Selects Successful Bidder in Sale Process
Tacora Resources Inc
Tue, Jul 23, 2024, 12:30 PM EDT5 min read

TORONTO, ON / ACCESSWIRE / July 22, 2024 / Tacora Resources Inc. ("Tacora" or the "Company") today announced that it has selected a bid from Millstreet Capital Management LLC, as investment manager on behalf of multiple noteholders ("Millstreet"), OSP, LLC (on behalf of certain managed funds) ("OSP") (Millstreet and OSP are each holders of certain of the Company's senior secured notes and senior secured priority notes) and Cargill, Incorporated (collectively with any affiliates, "Cargill" and together with OSP and Millstreet, the "Investors") as the Successful Bid under its sale process (the "Sale Process"), as defined therein, conducted pursuant to, and in connection with, its proceedings (the "CCAA Proceedings") before the Ontario Superior Court of Justice (Commercial List) (the "Court") under the Companies' Creditors Arrangement Act (Canada) (the "CCAA").

Following the selection of the Investors as the Successful Bidder under the Sale Process and as defined therein, the Company and the Investors entered into a subscription agreement (the "Subscription Agreement") on July 21, 2024. The Subscription Agreement contemplates, among other things, an equity injection of up to US$250 million by the Investors, assumption of substantially all pre-filing and post-filing trade amounts (subject to payment terms and amounts to be agreed to by the Company and the Investors), the assignment of key contractual arrangements (subject to payment terms and amounts to be agreed to by the Company, the Investors and such third parties), full repayment of the DIP facility, and continued employment for all existing Tacora team members. It also contemplates a new Cargill offtake agreement that will allow Tacora to generate higher net realized revenue per tonne. The transactions contemplated by the Subscription Agreement will allow Tacora to significantly deleverage its balance sheet, provide new capital to execute on its long-term plan to upgrade and modernize the Scully Mine and to achieve the Company's objective of producing in excess of six million tonnes of high-grade iron ore concentrate per year. The Subscription Agreement contemplates a target closing date of August 30, 2024.

Heng Vuong, Tacora's Executive Vice President and Chief Financial Officer, said "the transactions announced today with the Investors represent a successful outcome for Tacora and its stakeholders. The transactions will allow Tacora to emerge from the CCAA Proceedings as a much stronger and better-capitalized business focused on achieving the full potential of the Scully Mine and provide employment for Labrador West for generations to come. We thank all Tacora team members, our suppliers, and other stakeholders for their resilience, continued support through the CCAA Proceedings and contributions to this successful outcome."

The Subscription Agreement and transactions thereunder remain subject to, among other things, Court approval. The Company intends to appear before the Court on July 26, 2024, or as soon as possible thereafter, to seek an order approving the Subscription Agreement and the transactions contemplated thereunder. A copy of the Sale Process, the Subscription Agreement and more information related to the CCAA Proceedings can be found on the Court-appointed Monitor's website at http://cfcanada.fticonsulting.com/Tacora. Information regarding the CCAA Proceedings can also be obtained by calling the Monitor's hotline at 1-833-420-9074 or by email at tacora@fticonsulting.com.

Advisors

Greenhill & Co. Canada Ltd., an affiliate of Mizuho, is serving as financial advisor and Stikeman Elliott LLP is serving as legal counsel to Tacora. FTI Consulting Canada Inc. is serving as Court-appointed Monitor and Cassels Brock & Blackwell LLP is serving as legal counsel to the Monitor. GLC Advisors & Co., LLC is serving as financial advisor and Osler, Hoskin & Harcourt LLP is serving as legal counsel to Millstreet and OSP. Jefferies Financial Group Inc. is serving as financial advisor and Goodmans LLP is serving as legal counsel to Cargill.

About Tacora Resources Inc.

Tacora is a private company that is focused on the production and sale of high-grade and quality iron ore products that improve the efficiency and environmental performance of steel making and, subject to final process verification and economic assessment, the development of a high purity manganese product for advanced battery technology. The Company owns and operates the Scully Mine, an iron ore concentrate producer located near Wabush, Newfoundland and Labrador, Canada with a production capacity of six million tonnes per year. Additional information about the Company is available at www.tacoraresources.com.

Kaboom

apparently that was error, their target now is 28

Baird puts a target of 285, yikes

https://www.americanbankingnews.com/2021/04/13/robert-w-baird-reaffirms-buy-rating-for-scully-royalty-nysesrl.html

bold call

Things are heating up


Joe Broking, Tacora's executive vice president and chief financial officer, told the News Tribune that a restart date for Sydvaranger was not yet known as the company was focused on ramping up production of its other mine, the Scully Mine in Wabush, Newfoundland and Labrador, back up to its capacity of 6 million tons of pellets per year. It's currently producing about 3.5 million-4 million tons of pellets per year and employs more than 300 people.

https://www.duluthnewstribune.com/business/energy-and-mining/6840628-Grand-Rapids-based-Tacora-Resources-buys-Norwegian-iron-ore-mine