MIDI files judicial letter saying government jeopardising €50 million bond repayment

Ivan Camilleri - 12. November. 2025

In a judicial letter, MIDI plc, the company holding a 99-year concession to transform Manoel Island into a luxury development, has accused the Maltese government of jeopardising the repayment of a €50 million bond due next year to some 3,000 lenders.

This is the second judicial letter by MIDI, which has failed to meet the original development targets set under a 1992 agreement. It warned that it would have no alternative but to pursue legal action unless Prime Minister Robert Abela resumed negotiations towards a substantial financial settlement.

Addressed to the government, the judicial letter called for an end to “actions and lack of progress in ongoing out-of-court negotiations,” alleging that the government’s conduct was causing “serious, substantial and actual” harm to both the company and its creditors, including bondholders and those holding property rights under the concession.

MIDI rejected government accusations that it was in breach of contract, claiming entitlement to a further ten-year extension to complete its project on Manoel Island. The company also accused the Prime Minister of a sudden reversal of position, noting that draft agreements prepared weeks earlier had envisaged a ten-year extension.

Sources familiar with the negotiations told The Shift that the latest legal exchanges could be a sign of a full-scale court case, potentially delaying the government’s pledge to convert the island into a national park by a number of years.

MIDI is reportedly seeking multi-million-euro compensation from taxpayers in exchange for relinquishing the concession. The company has long been understood to lack both the appetite and the funds to fully realise the original development plan, with sources indicating it is now seeking more than €70 million.

An excerpt from the judicial letter sent to the government.

Complicating matters, MIDI faces potential claims from AC Enterprises Ltd, controlled by Anton Camilleri, known locally as Tal-Franċiż, who signed a preliminary agreement in 2021 to take over the project via a joint venture. MIDI now contends that the agreement was non-binding, although Camilleri may pursue legal action.

The original 1992 concession granted MIDI the right to develop Tigné and Manoel Island, with completion initially scheduled for 2023. While Tigné has been fully developed, works on Manoel Island have been limited to the restoration of the fort.

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8 Comments

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Paul

7 months ago

“The company also accused the Prime Minister of a sudden reversal of position, noting that draft agreements prepared weeks earlier had envisaged a ten-year extension”.
This confirms how The first ignored pushed back the public interest and when the public pushed back hard, he did the 180 u-turn .

Guest

Paul Bonello

7 months ago

The Government, alias RA, is being difficult and not negotiating at all only as a tactic to assist its blue eyed boy tal-FRANCIZ obtain a good deal for substantively no rights at all under a non binding memorandum of understanding WITH Midi

Guest

il-gzira ta' manwel

7 months ago

Reply to Paul Bonello

When Midi issued the bond, not one cent of the €50 million was going to finance the Manoel Island project. They used the money largely to pay off other borrowing. Furthermore, in the prospectus they had made it clear that government had the right to rescind the concession. Not only that but when the bond was issued Midi had not yet filed an application for an outline permit. They had yet to appoint consultants. Midi also made it clear that they could not do the project on their own and needed another partner. All this was made clear in the prospectus and those who chose to buy the bond were forewarned. Those who bought the bond did so at their own risk. They should not expect the taxpayer to bail them out. In any case the bond is secured by Midi property and assets. They also have cash coming in from the sale of the latest block in Tigne. The claim for a ten-year extension is a figment of Midi’s imagination. The Directors should take steps to sell the property securing the bond and use the money to repay bondholders. Bondholders should not lose any money if Midi disposes of its assets. Taxpayers should not pay for their financial and professional incompetence and for their cheating in the preparation of the EIA.

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Joseph Mifsud

7 months ago

These problems were created by the EU Commission because it didn’t apply art.9,para.4 of title III of the EU Constitution in Malta’s treaty.
The Principle of Proportionality law revokes any EU law that is detrimental to an EU country or citizen. This means that because of Malta circumstances no foreigner have the right to buy property in Malta.
It’s EU law !