A Gozo property venture that Opposition leader Adrian Delia is involved in is still in the process of selling enough units to pay off a multimillion-euro debt with HSBC.

Dr Delia and his business partners signed a legally binding agreement with the bank in July 2017 promising to pay off a €7.2 million loan taken out in 2006, after falling behind on the repayments.

Mġarr Developments Limited’s 2017 accounts show that by the end of that year, the bank debt had been reduced to €5.9 million.

Searches carried out by Times of Malta reveal that since the end of 2017, the company has sold €2.3 million worth of units in the apartment blocks overlooking Mġarr harbour.

If all the property sales have gone towards paying off the debt, that would still leave a shortfall of €3.6 million.

Asked if the property sales had gone towards repaying the HSBC debt, Dr Delia said the proceeds from the sales had covered loan repayments as well as the taxes and fees due as part of these sales.

Questioned if HSBC had indicated it would foreclose on the loan, the Opposition leader said there was no indication of this, as the bank was satisfied that the debt would be paid off from the remaining units that were for sale.

No indication of HSBC foreclosing on loan

He said Mġarr Developments had already signed a number of sale agreements that were enough to pay off the rest of the debt.

All signatories to the constitution of debt were deemed to be responsible for the amount owed to HSBC.

Mġarr Developments valued its stock of properties as at December 31, 2017, at €9.6 million.

Documents made available to Times of Malta earlier in the year revealed how Dr Delia is facing loan, spousal maintenance payments and other monthly commitments, including the lease of a Jaguar, of over €9,000. 

Dr Delia saw his gross earnings drop from €153,000 prior to entering politics to a pay of €43,000 as Opposition leader.

He also received an undisclosed amount for selling the shares in his legal firm as well as shares in other business ventures.

The Opposition leader has said in the past that the value of the shares is being paid back to him in monthly instalments.

His estranged wife last month filed a judicial protest accusing him of failing to settle two successive mortgage payments for their family home. She said Dr Delia had received warning letters about the missed home loan payments, a missed standing order, €25,000 outstanding on two credit cards as well as a balance of €19,000 in utility bills.

In a statement, the PN said the issue had come about because Dr Delia had not personally received the loan payment notices in time, and once received, the payments were immediately made. The pair are undergoing an acrimonious separation.

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