MIDI p.l.c. has confirmed it has been served with a fresh judicial letter from the Government of Malta, the Lands Authority, and Transport Malta concerning its emphyteutical concession for the Manoel Island and Tigné Point development project.

The notice, dated 24 September 2025, formally crystallises the government’s position by invoking clause 21.4 of the original deed signed in June 2000. It requires the company to remedy what are described as alleged defaults within six months and warns that the concession could be rescinded by the end of March 2026.

The alleged defaults primarily concern development completion deadlines set out under the emphyteutical concession.

In its announcement, MIDI rejected the allegations “in no uncertain terms,” insisting there is no valid legal basis for rescission or the imposition of penalties. The company said it would defend its position through all available legal means.

MIDI maintains that the deed itself provides for contractual extension mechanisms which apply to its development deadlines. These extensions, it argues, have been necessitated by delays outside its control, including permit processing, archaeological investigations, heritage protection requirements, and force majeure events.

The company said it will be formally replying to the judicial letter and continues to “explore all available options” to protect the interests of both shareholders and bondholders.

Despite the formal notice, MIDI emphasised that discussions with government and authorities remain ongoing. Both sides, it said, are engaged in parallel talks to try to reach a mutually acceptable resolution, with negotiations being conducted on a “without prejudice” basis.

MIDI described the judicial steps taken by both parties as “protective measures” designed to safeguard their respective legal positions while settlement discussions continue.

The company reiterated its commitment to engaging constructively and in good faith as part of this process. It also confirmed it will keep the market informed of any material developments, in line with its obligations as a listed entity under Capital Market Rules.

In recent months, the Manoel Island concession has faced renewed public scrutiny. A petition backed by over 29,000 signatures is calling for the island to revert to a public park, and Prime Minister Robert Abela has openly criticised the original 2000 deal as favoring speculators and “betraying the interests of the Maltese people.” He has also announced a detailed, clause-by-clause review of the concession contract and flagged potential legal action if breaches are found.