Four bidders battle for St Philip’s Hospital as court tells Official Receiver to pick winner

Four bidders, including mega-developers Carlo Stivala and Anthony Camilleri, known as Tal-Franciz, are battling to acquire the long-abandoned St Philip’s Hospital in Santa Venera, with the Commercial Court ordering the Official Receiver to take responsibility for choosing the preferred bidder.

In a decree delivered on Wednesday, Judge Ian Spiteri Bailey declined a request from the Official Receiver – the Malta Business Registry CEO – for the court to decide which of the four bidders had submitted the best offer for the hospital, the main asset of the insolvent Golden Shepherd Group Limited.

The latest development follows years of litigation over the hospital, formerly owned by ex-PN MP Frank Portelli, and more recent manoeuvring by developer Carlo Stivala, who acquired the multi-million-euro debt previously owed by Golden Shepherd to HSBC.

Court documents show that Cast Renting Limited, a company owned by Stivala, was formally authorised last May to replace HSBC in the ongoing proceedings.

However, Stivala’s acquisition of the debt did not give him ownership of the hospital, which remains subject to Golden Shepherd’s winding-up proceedings and a competitive sale process.

The Official Receiver launched a call for offers earlier this year. According to Wednesday’s decree, four bidders eventually submitted offers and have already undergone an evaluation. The bidders were not named.

On 23 July, the Official Receiver filed two notes containing details about the bidders and supporting documentation, asking the court to evaluate the offers and determine which bidder had presented the best conditions and possessed the necessary capacity to acquire the property.

Judge Spiteri Bailey ruled that this was not the court’s job.

Citing Article 238 of the Companies Act, the judge said the power to dispose of the assets of a company being wound up rests with the liquidator – in this case the Official Receiver. The court’s role is to supervise that exercise of power rather than substitute its own decision for that of the liquidator.

The judge stressed that the procedure needed to remain transparent and fair to creditors and all interested parties.

The court consequently ordered the Official Receiver, who has already evaluated the bids, to decide which of the four offerors should be considered the best bidder and with whom the eventual sale should be concluded.

Once that decision is taken, the Official Receiver must return to court and formally present his choice, allowing the judge to scrutinise the decision.

Carlo Stivala had previously publicly expressed interest in acquiring St Philip’s, while developer Anton Camilleri, known as Tal-Franċiż, had intervened in proceedings insisting that the property should be subjected to a competitive process.

The latest decree means that, despite Stivala having acquired HSBC’s position as Golden Shepherd’s major creditor, the battle for control of the strategically located hospital property remains open.