Developer Carlo Stivala has expressed interest in acquiring the long-abandoned St Philip's Hospital and is prepared to settle the facility's outstanding debts as part of the deal, a court has been told.

The hospital's owner, Frank Portelli, informed the court of Stivala's proposal in an attempt to delay the forced sale of the property through a public call for offers. St Philip's Hospital has been vacant for over ten years, while Portelli's company, Golden Shepherd Group Ltd, is currently undergoing liquidation proceedings.

As part of the liquidation process, the Office of the Official Receiver was instructed in July to issue a public call for offers for the hospital building, with the proceeds intended to repay Portelli's creditors. The move followed a court order requiring Golden Shepherd Group to pay HSBC €12 million in outstanding liabilities.

On Monday, the court granted Portelli several additional months to finalise negotiations with Stivala before the property is put up for public sale. In a decree issued the same day, Judge Ian Spiteri Bailey directed the Official Receiver to contact Stivala and request a detailed business plan outlining how creditors would be repaid. The public call for offers has been suspended until March 2026.

The ruling was delivered despite objections from HSBC, which argued that while Stivala's proposal "could be interesting", the Official Receiver was legally obliged to secure the best possible offer through an open process. The bank maintained that any interested party, including Stivala, should participate in a public call.

However, Judge Spiteri Bailey ruled that since assurances had been given that Stivala was willing to cover all outstanding debts, time should be allowed for the proposed deal to be concluded.