Restructuring and insolvency—Malta—Q&A guide

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Restructuring and insolvency—Malta—Q&A guide
  • 1. What main legislation is applicable to insolvencies and reorganisations?
  • 2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?
  • 3. What procedures are followed in the insolvency of a government-owned enterprise? What remedies do creditors of insolvent public enterprises have?
  • 4. Has your country enacted legislation to deal with the financial difficulties of institutions that are considered ‘too big to fail’?
  • 5. What courts are involved? What are the rights of appeal from court orders? Does an appellant have an automatic right of appeal or must it obtain permission? Is there a requirement to post security to proceed with an appeal?
  • 6. What are the requirements for a debtor commencing a voluntary liquidation case and what are the effects?
  • 7. What are the requirements for a debtor commencing a voluntary reorganisation and what are the effects?
  • 8. How are creditors classified for purposes of a reorganisation plan and how is the plan approved? Can a reorganisation plan release non-debtor parties from liability and, if so, in what circumstances?
  • 9. What are the requirements for creditors placing a debtor into involuntary liquidation and what are the effects? Once the proceeding is opened, are there material differences to proceedings opened voluntarily?
  • More...

Restructuring and insolvency—Malta—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to restructuring and insolvency in Malta published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: Ganado Advocates—Louis Cassar Pullicino

1. What main legislation is applicable to insolvencies and reorganisations?

The Companies Act, 1995 (Cap 386 of the Laws of Malta).

2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?

Companies that own ships or aircraft are regulated by specific laws, including the Merchant Shipping Act (Cap 234 of the Laws of Malta) and the Aircraft Registration Act (Cap 503 of the Laws of Malta) respectively, which contain particular insolvency rules.

3. What procedures are followed in the insolvency of a government-owned enterprise? What remedies do creditors of insolvent public enterprises have?

The Companies Act 1995 applies to the insolvency of government-owned enterprises, unless such entities are incorporated by statute or by other legal instruments not involving the traditional incorporation of a company. In that case, the relevant statute or instrument of incorporation would guide the insolvency.

4. Has your country enacted legislation to deal with the financial difficulties of institutions that are considered ‘too big to fail’?

Not specifically, but it is relevant to point out that specific insolvency rules apply in the case

Popular documents