Hamrun shopping mall owners to appeal insolvency order

The shareholders and directors of D.A. Holdings Limited, the owners of the Daniels shopping complex in Hamrun, have said they will appeal the court order that has declared the company insolvent.

Amongst the grounds of appeal is what they say is a blatant breach of the shareholders’, the directors’ and the company’s right to a fair hearing and their right not to be discriminated against.

“It results from the acts of the case instituted by Panta Contracting Limited that the shareholders, the directors and the company were prevented from adequately defending themselves against the claims of the creditor company,” lawyer Simon Micallef Stafrace said.

While Daniels shopping complex is still open to the public, a judge last week ordered the winding up of the operation after action was taken by creditors Panta Contracting Ltd, over an outstanding debt of €1.5 million.

The court heard that D.A. Holdings had several other creditors owed over €12 million. Panta Contracting argued that D.A. Holdings was in a state of insolvency and only appeared solvent on paper due to a €20 million revaluation of its properties in 2012, the last time the company filed its accounts.

But D.A. Holdings’ lawyer said that prior to the court order, the company directors instituted a constitutional case claiming that their right to a fair hearing and their right not to be discriminated against had been violated.  “A request was made to the court hearing the ‘insolvency’ case to suspend the hearing of the case until such time as the Court hearing the constitutional application handed down its judgment. This request was turned down,” Micallef Stafrace said.

The complex has lost some €500,000 alone in debts owed from More supermarkets, whose boss Ryan Schembri fled the country in 2014 leaving behind millions in debts.

Mr Justice Joseph Zammit McKeon ordered the dissolution of the company.