Company Reconstructions Fund Regulations Published

The COVID-19 pandemic will undoubtedly bring about liquidity difficulties and hardship for companies as the general economic climate continues to deteriorate.

In this aspect, it is the state's prerogative to provide liquidity assistance to entities facing financial difficulty in order to ensure a smooth recovery once the pandemic subsidies. The Companies Act (Company Reconstructions Fund) Regulations, 2020 (the "Regulations") have recently been published with the aim of creating the Company Recovery Fund (the "Fund"). Such fund intends to provide support for company recovery procedures that have been instituted in accordance with the Companies Act (the "Act").

Payments from the fund will be made to court-appointed Special Controllers who will be selected from a list held by the Official Receiver. As a support mechanism, the Malta Business Registry (the "Registry") will provide the Fund with five hundred thousand euro (€500,000) annually, to cover the