MIDI announced Friday that it has been served with a further judicial letter dated 24 September 2025 from the Government of Malta, the Lands Authority, and Transport Malta regarding the Company's emphyteutical concession contract dated 15 June 2000 relating to the Manoel Island and Tigné Point development project.

This judicial letter follows previous correspondence and "now formally crystallises the Government's position by invoking clause 21.4 of the emphyteutical deed, requiring the Company to remedy alleged defaults within six (6) months and threatening rescission of the concession by the end of March 2026," the company said in a note on the Stock Exchange.

The notice relates primarily to development completion deadlines under the emphyteutical concession. The company "once again categorically rejects these allegations in no uncertain terms and maintains that there is no valid legal basis for rescission nor the imposition of penalties." The company said it will vigorously defend its position through all available legal means, maintaining = its position that contractual extension mechanisms under the deed apply to extend development deadlines, preventing rescission.

These extensions arise from factors beyond the company's control, including permit delays, archaeological investigations, heritage requirements and force majeure events.

The company said it will be formally replying to the judicial letter whilst continuing to explore all available options to protect shareholders' and bondholders' interests. Notwithstanding these formal judicial exchanges, both parties remain engaged in parallel discussions aimed at reaching a mutually acceptable resolution. The Company continued to engage constructively and in good faith with the Government and relevant authorities whilst maintaining its commitment to this process.

The judicial measures taken by both parties are understood to be protective steps to safeguard their respective legal positions whilst negotiations continue. All discussions are being conducted on a strictly without prejudice basis, ensuring that participation in settlement discussions cannot be construed as any admission of liability or waiver of legal rights.

The Company will keep the market informed of any material developments in this matter. This announcement is being issued in compliance with the Company's obligations as a listed entity and the applicable Capital Market Rules.

The MIDI consortium was granted a 99-year concession in 2000 - with the then Nationalist government getting the support of the Opposition Labour Party - to develop luxury apartments on both Manoel Island and Tigné Point. 

Earlier this year, 29,000 people signed a petition calling for Manoel Island's transformation into a public park. 

The government had initially been on the developers' side, with Prime Minister Robert Abela, in May saying that "Taking Manoel Island back from a consortium of developers would cost the country hundreds of millions... the moment the state expropriates, you need to offer compensation... Maybe the developer would like it because he will get millions without having to do the development. But would I be using the people's money responsibly?" 

But, under public pressure, the government on 10 June filed a first judicial letter against MIDI saying that the consortium was in breach of the concession it had been granted.