Developer and hotelier Carlo Stivala has acquired more than €14 million in debt originally owed to HSBC Bank Malta by the former operators of St Philip’s Hospital, a move that significantly reshapes the contest for the site in Santa Venera.
Court documents show that the debt was transferred to Cast Renting Limited, a company where Stivala is listed as sole director. The agreement effectively replaces HSBC as creditor in legal proceedings against Golden Shepherd Group Limited, which previously ran the hospital.
According to filings before the Commerce Civil Court, Golden Shepherd Group owes Cast Renting just over €14 million, with the new creditor also claiming a further €8 million in accumulated interest.
Judge Ian Spiteri Bailey approved the substitution after neither HSBC nor representatives of Golden Shepherd Group objected to the request.
The move could significantly influence the future of the St Philip’s Hospital property, a large and strategically located site in Santa Venera that has been the subject of competing interest from developers.
The Office of the Official Receiver had reportedly identified multiple potential bidders awaiting the opening of an official expression of interest for the sale of the property.
Earlier this year, the court ordered the Official Receiver to begin accepting offers for the hospital site after revoking a previous decree that had temporarily allowed negotiations with Stivala to proceed.
The decision followed a legal challenge by developer Anton Camilleri, who argued that leaving negotiations in limbo would disadvantage other interested buyers.
The St Philip’s Hospital case stems from longstanding financial difficulties faced by Golden Shepherd Group, which accumulated loans dating back to the mid-1990s.
Court records show the group initially borrowed Lm2 million (around €4.6 million) from Investment Finance Bank in 1994, with additional loans in subsequent years increasing the overall borrowing. Over time, the accumulation of interest and repayment difficulties resulted in prolonged legal proceedings initiated by HSBC.
After years of litigation and financial restructuring attempts, the company was ultimately dissolved in 2023 following liquidation proceedings.
