Arbitration proceedings before the International Chamber of Commerce (ICC) in the case between the government of Malta and Steward Healthcare are at an advanced stage, with written pleadings expected to be concluded in the coming months, the government said on Sunday.

Steward and the government are battling the hospitals deal issue after Malta's court annulled all contracts awarded to Steward and its concession predecessors Vitals Global Healthcare to run Karin Grech, St Luke's and Gozo General Hospital.  

The courts had found fraud in the concession deal, originally awarded to Vitals, and also concluded that Steward had not fulfilled its contractual obligations.

Steward wants to be handed a €100 million cancellation fee it obtained through a side letter engineered by then-minister Konrad Mizzi.

The government is refusing to pay up and is demanding monetary compensation for the contractual obligations Steward failed to deliver during the period it ran the hospitals. 

Steward healthcare filed bankruptcy proceedings in the United States in May. The government said it has engaged US bankruptcy lawyers who are providing expert guidance throughout this process.

In July Federal authorities in Boston opened a criminal investigation into Steward, the CBS news network reported.

It said federal prosecutors at the US Attorney's office in Boston launched an investigation based on various allegations including fraud and violations of the Foreign Corrupt Practices Act.