Court suspends judicial auction sale at Swatar Price Club

The Civil Court has provisionally upheld an application filed by the liquidator of Price Club Operators Limited and has suspended the judicial sale by auction of the contents of the Price Club supermarket at Swatar originally due to be held today at the request of HSBC Bank Malta plc.

Dr Andrew Borg Cardona, the liquidator appointed by the court, explained that the company was put into liquidation on July 12 with retroactive effect to November 1, 2002.

He declared he was informed by a former director of Price Club Operators Limited that a judicial sale by auction of a number of movable items seized from Price Club (Swatar) Limited was appointed by the courts to take place today at 9 a.m.

These items consisted in a number of preserves, oils, kitchen items, toiletries, batteries, wines and spirits, perfumes, and other similar objects.

The request for the judicial sale by auction was filed by HSBC Bank Malta in its claim against Price Club (Swatar) Limited.

However, Dr Borg Cardona claimed that he had become aware that the sale was to include a number of movable items that appeared to be the property of Price Club Operators Limited, and not of Price Club (Swatar) Limited.

Further evidence regarding the ownership of these items was being collected, said Dr Borg Cardona, for the former directors of Price Club Operators Limited had not yet provided him with a statement of affairs of this company.

The former directors had however informed Dr Borg Cardona that the items that were due to be sold by auction were in fact property of the company of which applicant was liquidator.

In yesterday's application, Dr Borg Cardona declared that he had informed HSBC about this, but the bank had insisted that Price Club Operators' title to the items be established more thoroughly before the judicial sale by auction could be suspended.

However, the liquidator could not do so as he was still awaiting information from the former directors of Price Club Operators Limited.

Dr Borg Cardona concluded his application by stating that the rights of the company's creditors would be irremediably prejudiced if the judicial sale by auction were to proceed, and he requested the court to suspend the judicial sale by auction.

The Civil Court yesterday provisionally upheld this application and ordered that the liquidator's application be served upon the bank.