The government has issued a statement, saying that it has won an appeal against Mediterranean Film Studios which was occupying the Rinella Film Facilities.

The Home Affairs Ministry said The company, selected by the previous government, had not honoured its contract and the facilities had been left in a state of disrepair to the detriment of the film industry.

The company had appealed a Civil Court decision given in June 2012 which ordered it to return the land to the government after ground rent remained unpaid for several years.

The case was instituted by the Director of Lands. Mediterranean Film Studios had been granted the land on emphyteusis for 65 years in 1995.

The contract laid down that the government had the right to dissolve the emphyteusis if the emphyteuta failed to pay the ground rent for two years.