Court decides to keep Shoreline garnishee order in force despite missed deadline

Shoreline Mall p.l.c. has announced that the Maltese Courts have decided to keep in force a precautionary garnishee order connected to an ongoing legal dispute involving its sister company, Shoreline Contracting Limited, and Koray Global Malta Limited, despite the latter’s failure to meet a court-imposed deadline to deposit a financial guarantee.

The issue concerns €43 million frozen by the Court as a result of a legal dispute with contractors – Turkish company, Koray Global Malta Limited.

Shoreline Mall is arguing that it is not a party to the original contract of works between its sister company Shoreline Contracting Limited and Koray Global Malta Limited. Therefore, the garnishee order was imposed on the wrong company.

The Ultimate Beneficial Owner (UBO) is the same.

In a company statement issued on Tuesday, Shoreline Mall confirmed that while the Court had earlier agreed to partially revoke the original garnishee order, it required Koray Global Malta Limited to provide a guarantee of €1 million in Court by 25 August, noon. This condition was not met.

According to details published by Shoreline Mall, the Registrar of the Maltese Courts confirmed that the funds from Koray Global Malta Limited were not cleared into the Court’s bank account by the deadline, leading to the automatic cancellation of the deposit schedule in the online system.

When the funds eventually arrived, they were returned to Koray Global Malta Limited as they no longer met the procedural requirements.

Despite these developments, the Court ruled that the precautionary warrant should remain in force, a decision that Shoreline Mall described as “deeply disappointing”.

“Whilst respecting the Court’s decision, the company is in total disagreement with such decision and shall continue pursuing the judicial route to have the warrant lifted and to seek redress for the damages it is being exposed to,” the company stated.

Speaking to The Shift, Shoreline insisted it would still repay its bond of €14 million, which is due next year.

The company reiterated its commitment to keeping the market informed of any further developments in the ongoing proceedings.