MIDI p.l.c. has maintained its position regarding the Manoel Island agreement, stating that it has not defaulted on any of its obligations.

The Company, in an announcement on the Malta Stock Exchange, said that it has formally responded to a second judicial letter it received from the Government, the Lands Authority and the Transport Authority. MIDI said that it "has categorically rejected the allegations made," and said it confirms "that it is entitled to an automatic extension of the completion period under the contractual terms and that therefore no breach of the deed of emphyteusis has occurred."

The company "considers the intimation made by Government and the above-mentioned Authorities not to be in accordance with the contractually agreed terms, and both premature and untimely. The company has made clear that it has not defaulted on any of its obligations, as the completion period is automatically extended with each day that MIDI awaits the issuance of the final development permit for Manoel Island which to date is still pending. Consequently, contrary to Government's claims, the company has no breaches to remedy, and the alleged right to rescind the deed of emphyteusis and impose penalties is without basis and wholly vexatious."

MIDI said that it has formally requested that Government and the above-mentioned Authorities "immediately cease making unfounded allegations, recognise the automatic extensions of the completion dates, and withdraw the threat of rescission of the deed of emphyteusis. The company has reserved all its rights to take appropriate legal action as the case may require to protect its interests."

"In parallel, the company wishes to inform the market that without prejudice discussions with the Government remain ongoing, including the verification exercise by the Lands Authority of the claim for the consideration paid and the expenses incurred on Manoel Island which was submitted to the Lands Authority by MIDI. The company reiterates its position that it remains committed to finding a solution with Government in order to implement Government's stated objective for Manoel Island whilst at the same time safeguarding the company's rights. The company will continue to keep the market informed of any material developments."