A precautionary garnishee order worth over €56 million has been issued against the developers behind the Shoreline project in Smart City, freezing certain accounts linked to the group. Despite this, the company insists that operations remain unaffected, with alternative banking arrangements in place and minimal impact on day-to-day business.

The order was requested by Koray Global Malta Limited, a contractor claiming unpaid dues for construction works carried out under a 2020 FIDIC Yellow Book contract. The dispute is also subject to ongoing arbitration proceedings before the International Chamber of Commerce (ICC).

Concerns around the garnishee were initially flagged by tenants at the Shoreline Mall. These reports prompted a closer look at the legal action, which was confirmed by a court ruling in February.

The garnishee order, upheld by Mr Justice Mark Simiana in February 2025, applies to multiple entities in the Shoreline group, including Shoreline Contracting Ltd, Shoreline Holdings Ltd, Shoreline Mall plc, Shoreline Residence Ltd, and Jade Property Investments Ltd. Shoreline’s attempt to have the order revoked on procedural grounds — including a claim that the address used by Koray Global was incorrect — was dismissed by the court.

However, in comments shared with MeetInc, Shoreline executive director and chairman Ryan Otto firmly rejected the contractor’s claims, arguing that not only is nothing owed, but that Koray Global Malta Limited (KGML) is in fact indebted to them. Otto said that an independent project management and quantity surveying firm — QPM — has certified that KGML owes €12.09 million to Shoreline Contracting Ltd, not the other way around.

The Shoreline group terminated its contract with KGML in March 2024 after delays of more than two years. They claim that despite having paid for 80% of the contracted works, the contractor began engaging in what they describe as “extortionary tactics,” including withholding access to the mall and delaying handover. Eventually, Shoreline says it advanced an additional €10 million to complete the works and open the development.

The company also alleges that KGML used a fake address in Malta, frustrating attempts to initiate legal proceedings against it for months. A magistrate has since confirmed the address in question belongs to a school.

While Shoreline has challenged the current garnishee and says it expects to prevail once the case is heard on its merits, it notes that a similar provisional order previously issued against them was overturned when KGML failed to file a court case or pay a required deposit. The developer believes this latest legal move is part of a broader attempt to damage its operations and reputation while delaying being ordered to pay what it owes.

On Friday evening, Shoreline Mall plc issued a company announcement confirming that the contract with KGML had been terminated due to repeated breaches, and that arbitration proceedings are ongoing. The company said it is vigorously contesting both the contractor’s claims and what it described as frivolous and vexatious precautionary warrants. It maintained that Shoreline Mall plc was never party to the contract in question and continues to operate normally.