Secured Creditor's Omissions During Bankruptcy Proceedings Did Not Prejudice Other Creditors

The case of AMG Cold Stores Limited et vs Bank of Valletta P.L.C et was decided by the Court of Appeal in its Superior Jurisdiction on 25 October 2023. The Court of Appeal, presided by Chief Justice Mark Chetcuti, Judge Giannino Caruana Demajo and Judge Anthony Ellul, analysed whether Bank of Valletta p.l.c. (the 'Bank') had prejudiced the other creditors of the late Mr. Jonathan Pace (the 'Debtor') when it failed to inform them and the curator of the bankrupt (the 'Curator') of a number of life insurance policies pledged in its favour (the 'Policies') at the time when the Debtor had declared bankruptcy.

Facts of the Case

This case was filed in the First Hall of the Civil Court (the 'First Hall') in March 2015 by a number of the late Mr. Pace's creditors (the 'Plaintiffs') against the Bank, who was another creditor of Mr. Pace.