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I assent.
(L.S.) GEORGE VELLA
President
23rd December, 2022
ACT No. XXIV of 2022
AN ACT to provide for the partial transposition of Directive
(EU) 2019/1023, to strengthen the legislative framework relating to
insolvency and to make  provision with respect to matters ancillary
thereto or connected therewith.
BE IT ENACTED by the President, by and with the advice and
consent of the House of Representatives, in this present Parliament
assembled, and by the authority of the same, as follows:-
Short title and 
scope.1. (1) The short title of this Act is the Pre-Insolvency Act,
2022.
(2) The scope of this Act is to provide for a modern framework,
relating to early warning signs of insolvency, and restructurin g
procedures directed at avoiding insolvency, and to partially tr anspose
Directive (EU) 2019/1023 of the E uropean Parliament and of the
Council of 20 June 2019 on preventive restructuring frameworks,  on
discharge of debt and disqualifications, and on measures to increase
the efficiency of procedures c oncerning restructuring, insolven cy and
discharge of debt, and amending Directive (EU) 2017/1132 (Directive
on restructuring and insolvency).
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PART I 
PRELIMINARY PROVISIONS
Interpretation. 2. In this Act, and in any regulations made thereunder, unless the
context otherwise requires:
"affected parties" means creditors, equity holders, or employee s
including an employees’ representative, whose claims or interes ts are,
or may be, directly affect ed by a restructuring plan;
"best-interest-of-creditors test" means a test that is satisfie d if the
Court is reasonably satisfied that no dissenting creditor would  be
worse off, under the specific restructuring plan, than such a creditor
would be if the normal ranking of  liquidation priorities were a pplied,
or in the event of the next-best-alternative scenario, if the r estructuring
plan were not confirmed;
Cap. 459."close-out netting provision" shall have the meaning assigned t o it
in the Set-Off And Netting on Insolvency Act or regulations iss ued
thereunder;
S.L. 595.27."competent authority" means the Insolvency and Receivership
Service within the Malta Business Registry established by the M alta
Business Registry (Establishment as an Agency) Order;
"Court" means the Civil Cour t (Commercial Section);
Cap. 16.
Cap. 386."debtor" means any natural pers on carrying out a trade, busines s,
craft or profession in or from wit hin Malta, or any legal organ isation in
terms of the Second Schedule to the Civil Code, including, but not
being limited to, any commercial partnership formed and registered
under the Companies Act, and expressly excludes: 
(a) insurance undertakings or reinsurance undertakings
as defined in points (1) and (4) of Article 13 of Directive 2009/138/EC; 
(b) credit institutions as defi ned in point (1) of Article
4(1) of Regulation (EU) No. 575/2013; 
(c) investment firms or collective investment
undertakings as defined in points (2) and (7) of Article 4(1) o f
Regulation (EU) No. 575/2013; 
(d) central counter parties as defined in point (1) of
Article 2 of Regulation (EU) No. 648/2012; 
(e) central securities deposit ories as defined in point (1)
of Article 2(1) of Regulation (EU) No. 909/2014; 
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(f) other financial institutions and entities listed in the
first sub-paragraph of Article  1(1) of Directive 2014/59/EU; 
(g) public bodies under national law; and
(h)  natural persons in respect of debts not incurred in the
carrying out of a trade, busin ess, craft or profession;
"equity holder" means a person that has an ownership interest i n a
debtor or a debtor’s business, i ncluding a shareholder, provide d that
equity holders having separate c laims against the debtor shall,
notwithstanding, remain entitled to be treated separately as creditors of
the debtor;
Cap. 452.
Act No. XXV of 
2022."essential executory contract" means a contract between a debto r
and one (1) or more creditors thereof, which, at the time a sta y of
individual enforcement actions is granted or applied, the parti es are
under an obligation to perform, and the performance of which sh all be
necessary for the continuation of the debtor’s day-to-day busin ess,
including contracts for supplies  or services that, if suspended , would
lead to the debtor's activities being interrupted, or materiall y and
detrimentally affected, or otherwise becoming substantially
diminished, but shall exclude contracts of employment as regula ted by
the Employment and Industrial Relations Act;
"insolvency practitioner" means a person authorised to act as a n
insolvency practitioner in terms of the Insolvency Practitioner s Act,
2022;
"Minister" means the minister responsible for the registration of
commercial partnerships;
"official of the debtor" means:
Cap. 386.
Cap. 168. (a) in relation to a debtor being a company formed and
registered under Part V of the Companies Act, or a limited
liability company formed  in terms of the Com mercial Partnership s
Ordinance, or any director, or other person, by whatever namethey may be called, carrying out s ubstantially the same functio ns
in relation to the direction of the company as those carried ou t by
a director;
Cap. 386.
Cap. 168.(b) in relation to a debtor being a commercial partnership
formed and registered under Part I II of the Companies Act or th e
Commercial Partnerships Ordinance where applicable, any
partner in whom the administrat ion and representation of the
partnership is vested;
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(c) in relation to a debtor being a legal organisation not
mentioned in paragraphs (i) or (ii), shall include any person,
under whatever designation th ey may operate, who, whether
alone or with others, is designated by the constitutive documen ts
of the legal organisation or any other instrument, decision, or der
or arrangement binding on the le gal organisation, as being vest ed
with the administration and representation thereof, or through
whom it is, or may be, exercised:
Provided that where the debtor is a natural person,
any reference to the officials o f the debtor shall be construed  as
referring to the debtor himself;
"restructuring" means the impleme ntation of any measures aimed at
preserving or restoring the debt or's economic vi ability, that m ay
include changing the compositi on, conditions or structure of a debtor's
assets and liabi lities or any other part of the debtor's financ ial
structure, sales of assets or parts of the business, the sale o f the
business as a going concern, as well as any necessary operational
changes, or any combination of such elements.
PART II 
EARLY WARNING TOOLS AND CRISIS PREVENTION 
Power of the 
Minister to make 
regulations.3. Debtors shall be entitled to access early warning tools
intended to enable debtors to detect circumstances that could give rise
to a likelihood of insolvency and to signal, to the debtor, the  need to
act without delay, such as the Minister may, on the advice of t he
competent authority, f rom time to time prescribe by regulations  made
under this Act.
Availability of 
information 
about early warning tools.4. The competent authority shall be responsible to develop and
maintain relevant and up-to-date information about the availabi lity of
early warning tools, as well as about the preventive restructur ing
procedures available in terms of this Act, which information sh all be
publicly available in such manner as the competent authority sh all
deem fit and appropriate for the intended purpose. 
Duties of 
officials of the 
debtor to monitor early 
warning signs of 
insolvency.5. The officials of the debtor shall, by reference to early warnin g
tools and any other information reasonably available to them,
continuously monitor developments  that may expose the debtor to  a
likelihood of insolvency and, where such developments are ident ified,
take appropriate countermeasures with a view to preventinginsolvency and ensuring business viability:
Provided that this article sha ll not prejudice the provisions o f
any other law intended to regulate the conduct of the officials  of the
debtor including but not limited t o instances where they knew, or
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should have known, that there wer e no reasonable prospects of
avoiding the insolvency of the debtor.
Duties of the 
officials when debtor is 
exposed to 
likelihood of insolvency.6. (1) Where the officials of the debtor become aware that the
debtor has become exposed to a likelihood of insolvency, either  as a
result of:
(a)  the information and data  made available by virtue of
the early warning tools; or 
(b) any financial review made by the auditors of the
debtor; or
(c) any request by a creditor or creditors, or the
representative of the debtor’s employees, or a debenture or
equity holder to consider its financial position; or 
(d) prevailing circumstances that otherwise expose the
debtor to the likelihood of insolvency, 
the officials shall forthwith, and in any event, not later than  thirty (30)
days from becoming aware thereof, duly convene a meeting of theofficials, for the purpose of reviewing the debtor’s position a nd of
determining what steps should be taken to deal with the situati on,
having regard to the interests of  the creditors, equity holders,
employees, and other stakeholde rs of the debtor, and including,  but not
limited to, consideration as to wh ether the debtor should consu lt with
an insolvency practitioner and, or, /g3make a preventive restructuring
application in terms of article 9. 
Cap. 13. (2) Without prejudice to sub-articl e (1), where the debtor is a sole
trader, it shall be sufficient f or the trader to document its r eview and
determination in terms of sub-article (1), and keep record of s uch
documentation in the manner set out in article 13 of the Commer cial
Code. 
(3) The minutes of a meeting in t erms of sub-article (1) shall
include a detailed review of the financial matters of the debto r and the
determination made , and shall be kept at the debtor’s office.
(4) Where the meeting is called fo llowing a request by any perso n
listed in paragraph (c) of sub-a rticle (1), the debtor shall by not later
than fourteen (14) days from the said meeting communicate in wr iting
to such person, and to the competent authority whether a meetin g in
terms of sub-article (1) has been held.
Equity holders. 7. No equity holder of the debtor may, notwithstanding anything
contained within the constitutiv e instruments of the debtor or any
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instruments ancillary thereto, ob struct, directly or indirectly , the
officials of the debtor from taking any action lawfully attribu table to
them in terms of this Act.
PART III 
ENTRY INTO PREVENTIVE RESTRUCTURING PROCEDURE 
Eligibility for 
preventive restructuring.8. Where a debtor has, or the o fficials of the debtor have,
whether by reference to article 6, or otherwise, reasonably det ermined
that the debtor is exposed to a likelihood of insolvency, having regard
to the debtor’s business circumstances and its actual, continge nt, and
prospective assets and liabilities, a preventive restructuring application
may be made to the Court reques ting it to place the debtor unde r a
preventive restructuring procedure, provided that the debtor:
(a) has reasonable prospects of viability, that is to say the
debtor’s economic viability is li kely to be preserved or restor ed
as a result of being placed under a preventive restructuring
procedure;
Cap. 12.(b) has not become liable for the payment of a debt that
has remained unsatisfied, in whole or in part, after twenty-fou r
(24) weeks from the enforcement of an executive title against the
debtor by any of the executive acts specified in article 273 of the
Code of Organization and Civil Pr ocedure, or has been otherwise
declared by a court to be unable to pay its debts; and
(c) has not previously been admitted to preventive
restructuring procedures in the three (3) years preceding the d ate
of the application.
Types of 
preventive restructuring 
procedures.9. (1) A preventive restructuring application, hereinafter in
this article also referred to as the "application", shall be ma de by
means of an application to the Court, to be made or endorsed by  an
insolvency practitioner.
(2) The insolvency practitioner making or endorsing, as the case
may be, the application referred  to in sub-article (1) shall, b y virtue
hereof, subject only to the provisions of article 13, be design ated as the
insolvency practitioner responsible to assist the debtor in the
preventive restructuring procedure, and all the obligations of aninsolvency practitioner as applicable in terms of t his Act shal l apply to
the said insolvency practitioner for so long as the insolvency
practitioner shall remain so appointed. 
(3) The application referred to in sub-article (1) shall compris e a
request to the Court to place the debtor into a preventive restructuringprocedure under one of  the following specific types of preventi ve
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restructuring procedures:
(a) a standard preventive restructuring procedure for the
formulation of a restructuri ng plan in accordance with the
requirements of the Second Schedule, and to be submitted for
adoption by the affected parties in terms of Part VI;
(b) a pre-formulated preventive restructuring procedure,
for the submission of a restr ucturing plan formulated in
accordance with the requirements of the Second Schedule, for
adoption by the affected parties in terms of Part VI; or
(c) a pre-approved preventive restructuring procedure,
for the confirmation of a res tructuring plan formulated in
accordance with the requirements of the Second Schedule, that
has already attained the necessary approval for adoption by the
affected parties in terms of article 41 or 42.
Contents of 
application.10. The insolvency practitioner making or endorsing, as the case
may be, the application referred to in article 9(1) shall annex  to the
application, the following documents:
(a) a summary of the debtor’s business and the manner in
which it is operated, and a st atement of the full facts,
circumstances and the causes which have led the debtor to
becoming exposed to a likelihood of insolvency;
(b) a statement as to previ ous restructuring procedures
entered into by the debtor and the outcome of such procedures; 
(c) a reasoned statement on the debtor’s prospects of
economic viability, having regard also to the debtor’s actual,contingent, and prospective a ssets and liabilities, and includi ng
consideration as to how preventive restructuring may reasonably
eliminate or substantially reduce the debtor’s likelihood of
insolvency, and enable the debtor’s economic viability to be
preserved or restored;
(d) audited financial statements, or management
accounts if audited financial statements are not available, for  the
last two (2) full financial years, or, if the debtor has been trading
for a shorter period of time, for such s horter period, and made up
to not less than thirty (30) days before the date of the applic ation;
(e) a statement of the debtor’s assets and liabilities, made
up to a date not earlier than two (2) months from the date of t he
application, including a value attributed to the listed assets and
liabilities in the r easoned opinion of the officials of the deb tor;
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(f) a list of the creditors of the debtor, containing the
names, addresses, and electronic mail addresses thereof, togeth er
with an indication of the amount  due to each of such creditors
and the security, if any, enjoye d by the respective creditors;
(g) a preventive restructuri ng filing declaration made out
in the form set out in t he First Schedule; 
(h) if the debtor is applying for admission to standard
preventive restructuring:
(i) a statement as to how the mechanisms made
available to the debtor in terms of standard preventive
restructuring procedures may enable the financial andeconomic situation of the debtor to be improved in the
interests of its creditors, e quity holders, employees, other
stakeholders and, if applicable, the debtor himself as a
viable going concern; and
(ii) an identification of any essential executory
contracts of the debtor;
(i) if the debtor is applying for admission to pre-
formulated preventive restructuring:
(i) a restructuring plan, prepared in accordance
with the requirements of the Second Schedule, to be
submitted for the approval  of the affected parties; 
(ii) if available, writ ten confirmation of the
contingent approval of the res tructuring plan submitted for
adoption by the affected parties in terms of sub-paragraph
(i), by the approving affected parties; and
(iii) an identification of any essential executory
contracts of the debtor;
(j) if the debtor is applying for admission to pre-
approved preventive restructuring:
(i) a restructuring plan, prepared in accordance
with the requirements of the Second Schedule, that hasbeen adopted by the affected parties, so that it may be
submitted to the Court for confirmation in terms of article
41; 
(ii) written confirmation of the approval of the
restructuring plan submitted for adoption by the affected
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parties in terms of sub-paragraph (i), by the approving
affected parties; and
(iii) appropriate supporting documentation and
statements, where applicable, as may be necessary so as toevidence that the restructuring plan has satisfied the
criteria for a cross-class cr am-down in terms  of article 42.
Hearing of 
application and 
issue of preventive 
restructuring 
order.11. (1) On the hearing of an application, which shall take place
within not more than thirty (30) days from the filing of the application,
the Court may, after examining al l the circumstances and the op tions
that are available, either dismiss the application or issue a preventiverestructuring order, acceding thereto and placing the debtor un der the
requested preventive restructuring procedure.
(2) The Court shall immediately decide whether to accede to the
application, and accordingly plac e the debtor under the prevent ive
restructuring procedure and issu e a preventive restructuring or der, only
where it is satisfied: 
(a) that the application which has been submitted by the
insolvency practitioner is complete and contains all the
necessary annexes in terms of article 10;
(b) that the type of preventive restructuring being
requested is suitable to the circumstances of the debtor and it s
creditors; and 
(c) that the issuing of the preventive restructuring order
would, in the event of an applic ation for a standard or pre-
formulated preventive restruct uring procedure, be likely to
facilitate the confirmation of a  restructuring plan that satisf ies
the requirements of article 43(2) and shall enable the debtor t o
restructure, with a view to pr eventing insolvency and ensuring its
economic viability, having regard  to the interests of the credi tors,
equity holders, employees, and othe r stakeholders of the debtor .
Notification of 
the preventive 
restructuring 
order.12. (1) The insolvency practitione r shall notify any creditors
listed in the application by virtue of sub-article 10(f), the competent
authority, and the Registrar of Courts of the issue of a preven tive
restructuring order in terms of this Part, without undue delay,  at the
expense of the debtor.
(2) The insolvency practitioner shall publish notice of the issu e of
the order on a website maintained  by the competent authority fo r this
purpose, not later than fourteen day s (14) from the issue of the order. 
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Appointment of 
alternative 
insolvency practitioner.13. (1) Any creditor of the debtor may, at any time, make an
application to the Court for the appointment of an alternative
insolvency practitioner, where the creditor:
(a) has reasonable grounds to believe that the insolvency
practitioner is subject to a conf lict of interest or is otherwi se
unable to perform the functions thereof impartially; or
(b) is of the opinion that the  insolvency practitioner does
not have the specific competence, experience, or resourcesrequired to adequately participate  in the preventive restructur ing
procedures.
(2) Where an application is made in terms of sub-article (1), th e
following documents shall be annexed thereto:
(a) the written confirmation of the proposed alternative
insolvency practitioner, that he is available and prepared toparticipate in the preventive re structuring procedures in terms  of
the preventive restructuring order;
(b) a preventive restructuri ng filing declaration made out
in the form set out in t he First Schedule; and
(c) the written confirmation of not less than fifty per cent
(50%) of the debtor’s creditors as listed in article 10(f), byreference to both the number of individual creditors and the
economic value of their claims, that such creditors approve of the
appointment of the alternati ve insolvency practitioner.
 (3) Where the Court, after hearing the insolvency practitioner,  is
satisfied that the requirements of sub-article (1) subsist, the  Court shall
accede to the application submitt ed in terms of this article an d shall
issue an order immediately ter minating the appointment of the
insolvency practitioner and c onfirming the appointment of the
alternative insolvency practitioner:
Provided that the Court shall cause a copy of the order to be
delivered to the Registrar of Courts and the competent authorit y, and
the latter shall be required to d etermine what action, if any, may be
warranted in the circumstances with respect to the insolvency
practitioner.
(4) The filing of an application in terms of this article shall not
have any suspensive or negatory effect on the debtor’s status as beingunder preventive restructuring pr ocedures, or on the protections
granted to the debtor by virtue of being admitted to preventive
restructuring procedures, or on any action taken by the insolve ncy
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practitioner prior to the date of  issue of the order referred t o in sub-
article (3).
(5) Where, within the context of a preventive restructuring
procedure, the insolvency prac titioner is no longer able to exe cute the
responsibilities i mposed in terms of this Act, whether as a result of
resignation, interdiction, incapacitation, death, or otherwise,  the debtor
shall, within forty-eight (48) hours of becoming aware of such fact, by
application to the court, reque st the appointment of an alterna tive
insolvency practitioner:
Provided that this application shall, mutatis mutandis , comply
with the requirements of sub-articles (2)(a) and (2)(b): 
Provided further that the debto r shall be prohibited, without
the express prior approval of th e Court, from taking any action , the
performance of which shall require the involvement of the insol vency
practitioner in terms of this Act or as the Court may otherwise stipulate
in the preventive restructuring order issued in terms of articl e 11, until
a new insolvency practitioner has been confirmed by the Court. 
Effect of the 
preventive restructuring 
order.14.  (1) For the period commencing upon the filing of an
application and until the earlier of the dismissal of the appli cation, or
the termination of the preventive restructuring order:
(a) any obligation incumbent on the debtor to make an
application for the opening of pr oceedings that may result in a
judgement declaring the bankruptcy of the debtor, or the
dissolution or winding up of the debtor in terms of law, shall be
suspended; 
(b) any act or proceedings that may result in a judgement
declaring the bankruptcy of the debtor, or the dissolution orwinding up of the debtor in terms of law, shall be stayed; and
(c) no new act or proceedings that may result in a
judgement declaring the bankruptcy of the debtor, or the
dissolution or winding up of the debtor in terms of law, shall betaken or commenced against the debtor. 
(2) The Court shall suspend, stay or disallow any such act or
proceeding ex officio  upon becoming aware that a preventive
restructuring order is in force.
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PART IV 
GENERAL PROVISIONS ON PREVENTIVE RESTRUCTURING 
PROCEDURE
Normal 
activities of the 
debtor and creditor 
participation.15. (1) During the course of a preventive restructuring
procedure, the debtor shall not, without the prior approval of the
insolvency practitioner:
(a) terminate the employmen t of any employees of the
debtor on the basis of redundancy;
(b) sell or in any way dispose of, or encumber by
providing as security, any assets or property of the debtor; or
(c) enter into any long- term commitment:
Provided that for the purposes hereof, a long-term
commitment shall mean any contra ctual commitment for a duration  of
longer than six (6) months:
Provided further that a contract ual commitment that is entered
into within the six (6 ) month period after the termination of a  previous
contractual commitment, shall be considered as a continuation of the
previous contractual commitment if the obligations being contra cted
are substantially the same.
(2) At any time during the course of a preventive restructuring
procedure, a creditor or creditors of the debtor, or an employe e
representative of the debtor’s employees, may request that the
insolvency practitioner provide t hem with information regarding  the
activities being carri ed on by the debtor in the course of the preventive
restructuring procedure, and the extent to which progress has b een
made on the negotiation of a restructuring plan. 
(3) The insolvency practitioner , upon receipt of a request made in
terms of sub-article (2), shall provide the requested informati on
without undue delay to the person or persons having made the re quest,
only if, and to the extent that, the provision of such informat ion is, at
the discretion of the insolvency practitioner, reasonable in vi ew of the
person’s interest in the preventive restructuring procedure, and only if
the provision thereof would not be prejudici al to the preventiv e
restructuring procedure. 
(4) At any time during the course of a preventive restructuring
procedure, the debtor, or the insolvency practitioner with the consent
of the debtor, or both, may cons ult with any interested party, including
any creditor or creditors or employee representative of the deb tor’s
employees, with respect to any pr oposed actions to be taken wit h the
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intention of restoring the debtor’s economic viability or negot iating a
restructuring plan. 
Claims that may 
form part of a restructuring 
plan.16. (1) A restructuring plan formula ted in terms of a preventive
restructuring procedure may propo se to restructure claims, whet her
secured or unsecured, that:
(a) are lawfully enforceable against the debtor at the
time of the submission of the restructuring plan; and
(b) arise from:
(i) contractual arrangements, including debts that
are contingent upon the occurrence of f uture circumstances
or that have otherwise not yet become due; 
(ii) shares, equity or other ownership rights in the
debtor, including sums due by way of dividends, profits or
otherwise;
(iii) taxes due by the debtor in Malta, excluding
taxes levied on consumption such as value added taxes,
and excluding taxes due which have been withheld orotherwise collected by the debtor on behalf of any
authority or government agency; or
(iv) any other claims that the Court may, upon the
application of the interested creditor, order to be includedwithin the restructuring plan:
Provided that the restructu ring plan may not, under any
circumstances, purport to include, or affect the ranking of, cl aims
arising in connection with:
Cap. 452.(a) wages due by the debtor a nd constituting a privileged
claim over the assets of the debt or in terms of article 20 of t he
Employment and Industrial Relations Act;
(b) civil debts due by the debtor exclusively by way of
damages in tort; and
(c) any fine ( ammenda o r  multa ) due by the debtor in
terms of Maltese law.
(2) Where the restructuring plan includes measures leading to
changes in work organisation, employment conditions, or contrac tual
relations with workers, the appl ication of such measures shall be
without prejudice to any requirement of the relevant party to discuss,
VERŻJONI ELETTRONIKA
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or notify the measures with, or t o, the respective workers, or
representatives thereof, as the case may be, as may arise in te rms of
law or in terms of any collective agreement.
(3) Any agreement extraneous to the restructuring plan,
howsoever formulated, that purpor ts to exclude or include a cla im
within the scope of a restructuring plan in a manner contrary t o the
provisions of this article, shall be null and void.
(4) Any contractual provision within an executory contract
concluded by the debtor, that pur ports to allow a party to the contract
to exercise, to the detriment of the debtor, any right of termination, or
any right to accelerate, modify, withhold or suspend the perfor mance
of its obligations in favour of the debtor, or any right to rep ossess any
property leased, sold or granted to the debtor, solely by virtu e of the
debtor’s commencement of the preventive restructuring procedure  or
any procedure in the course thereof, shall be null and void.
Selection of 
affected parties.17. (1) The debtor may choose to exclude claims from the
restructuring plan where  it is evident that:
(a) the claims excluded from the restructuring plan
would be reasonably expected to be settled in full, should the
restructuring plan not be confirmed; or
(b) the exclusion is justified in the context of the
economic realities of the debtor, particularly where the includ ed
debt is secured against assets of the debtor. 
(2) The criteria used to justify the exclusion of any claims in
terms of this article must be explained in sufficient detail wi thin the
restructuring plan and the Court must be satisfied that the pro posed
exclusion is compatible with the object and purpose of this art icle and
would not result in unfair prejudice to any excluded creditor. 
(3) All creditors in respect of claims that have not been exclud ed
from the restructuring plan in terms of this article shall be d eemed to
be affected parties for the purposes of the restructuring plan and
otherwise for the purposes of this Act.
Treatment of affected parties 
in classes.18. (1) All affected parties shall be organised into classes, as
the insolvency practitioner may deem necessary to distinguish b etween
the varying economic interests the reof, and which classes shall , at
minimum, distinguish between:
(a) holders of secured claims;
(b) holders of unsecured claims; 
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Cap. 452.(c) holders of claims for the payment of wages not
constituting a privileged claim over the assets of the debtor i n
terms of article 20 of the Emp loyment and Industrial Relations
Act;
(d) holders of subordinated cl aims, meaning claims that,
in the event of the liquidation of the debtor’s assets, would
remain unpaid until the full settlement of all non-subordinated
debts of the debtor; and
(e) holders of shares, equity or other ownership rights in
the debtor.
(2) The insolvency practitioner shall, when formulating classes of
affected parties, have particular  regard to the protection of v ulnerable
creditors, such as workers and s mall suppliers, and shall also organise
a vulnerable creditors’ class, or classes, if the insolvency pr actitioner
considers this to be necessary f or the protection of the vulnerable
creditors.
(3) The affected parties shall be further divided into additiona l
classes, as may be necessary in order to distinguish between af fected
parties within the same class but  having claims of different le gal
priority in the event of the liquidation of the debtor’s assets .
(4) In all cases, all classes of affected parties should be clea rly
distinguished from one another, and the criteria used to distin guish
between affected parties must be clearly specified within therestructuring plan. 
Equal treatment 
of affected 
parties.19. (1) All affected parties comprising part of a specific class
shall be treated equally for the purposes of the restructuring of their
claims within the scope of the r estructuring plan, except insof ar as any
detrimental treatment is expressl y agreed to by the affected pa rties to
whom such differentiation shall apply.
(2) Where an affected party agrees to be treated differently fro m
other affected parties within the same class in terms of the pr eceding
sub-article, the restructuring plan shall be accompanied by an express
statement, in writing, by each of the affected parties to the detriment of
whom the differentiation i n treatment shall apply. 
(3) Any agreement extraneous to the restructuring plan,
howsoever formulated, that grants, or purports to grant, an unf air
advantage to an affected party, whether pursuant to the terms o f a
restructuring plan or otherwise in connection with the preventi ve
restructuring procedures, shall be null and void.
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Protection of 
new and interim 
financing.20. (1) Any interim financing acquired by the debtor in terms of
article 31, or any new financing forming part of a restructurin g plan
that is duly confirmed in terms of this Act, shall, in the case of any
subsequent insolvency proceedings in respect of the debtor:
(a) not be declared void, voidable, or unenforceable;
Cap. 386.
Cap. 16. (b) not constitute a basis fo r any claim or allegation of
wrongful trading or fraudulent preference, in terms of the
Companies Act, that may be brought against the debtor; and 
(c) the grantors of such new or interim financing shall
not, notwithstanding anything to the contrary contained in anyother law, incur liability on th e grounds that such financing i s
detrimental to the creditors of the debtor:
Provided that the provisions  of this sub-article shall
not, in any way, limit the entit lement of a creditor to bring a n
action on the basis of article 1144 of the Civil Code. 
(2) Any agreement, howsoever formulated, that purports to
exclude or limit the provisions of this article, shall be null and void.
Protection of 
restructuring 
related transactions.21. (1) Any transactions reasonably entered into by the debtor,
as the debtor may prove to be dir ectly necessary for the negoti ation of
a restructuring plan in the cour se of preventive restructuring
procedures, or for the implementation of a restructuring plan that has
been confirmed in terms of this  Act, including, without limitat ion, fees
and costs incurred for:
(a) the negotiation, adoption, or confirmation of a
restructuring plan;
(b) the provision of professional advice closely
connected with the restructuring; 
(c) the payment of workers’ wages for work already
carried out; and
(d) any other payments or disbursements made in the
ordinary course of t he debtor’s business,
Cap. 386.shall, in the case of any subseque nt insolvency proceedings in respect
of the debtor, not be declared void, voidable, or unenforceable , or
constitute a basis for any claim or allegation of wrongful trad ing, or
fraudulent prefe rence in terms of the Co mpanies Act, that may b e
brought against the debtor: 
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Cap. 16.Provided that the provisions of this sub-article shall not, in
any way, limit the entitlement of a creditor to bring an action  on the
basis of article 1144 of the Civil Code. 
(2) Without prejudice to the prote ctions stipulated in sub-artic le
(1)(a), the remuneration of an insolvency practitioner, as well  as any
expenses incurred or disbursements made by the insolvency
practitioner in the exercise of its functions, shall represent a privileged
claim over the assets of the debtor, which, notwithstanding any thing
contained in any other law, shall  be paid with priority to all other
secured or unsecured debts of the debtor. 
Act No. XXV of 
2022.(3) The Minister may, in consultation with the competent
authority mentioned in the Insolvency Practitioners Act, 2022, make
regulations for the payment of expenses and remuneration of the
insolvency practitioner.
(4) The Court shall have the power to order that the payment of
the expenses and remuneration of the insolvency practitioner ar e paid
in terms of regulations made in terms of sub-article (3).
(5) Any agreement, howsoever formulated, that purports to
exclude or limit the provisions of this article, shall be null and void.
Holding of 
meetings.22. (1) Notwithstanding anything contained within the
constitutive instruments of the debtor or any instruments ancil lary
thereto, any meeting convened or h eld in terms of this Act may be
validly held remotely in acco rdance with this article:
Provided that where a meeting is not held remotely, any
person entitled to be present at the meeting may still attend s uch
meeting remotely, and all of the  requirements applicable to the holding
of a remote meeting in terms of this article shall apply in the  interest of
those persons attending remotely. 
(2) It shall be the responsibility of the insolvency practitione r to
ensure that sufficient technologi cal means are available, at th e place of
the meeting, to enable any persons attending the meeting remotely to
effectively follow and participate in the discussion.
(3) Any person entitled to be present at a meeting shall,
notwithstanding any provision or agreement to the contrary, be entitled
to appoint another person as their proxy to attend the meeting and, if
necessary, take any decision relevant to their interests, and v ote for and
on their behalf.
(4) The appointment of a proxy shall be in writing and may be
recorded electronically, and proof of such appointment shall be
VERŻJONI ELETTRONIKA
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provided to the insolvency practit ioner prior to the meeting.
(5) Every notice calling a meeting in terms of this Act shall be  in
writing and may be transmitted by means of electronic mail, by not
later than seven (7) days from th e meeting and shall include, w ith
reasonable prominence:
(a) a statement that persons  may attend the meeting
remotely;
(b) a statement that persons shall be entitled to appoint a
proxy that, for the avoidance of doubt, may also attend the
meeting remotely;
(c) details regarding the means to be used to attend the
meeting remotely; and
(d) the procedure regulating how any person entitled to
attend may participate in the discussion.
Appointment of 
a mediator.
Cap. 474. 
Cap. 474.23. (1) At any point during the course of a preventive
restructuring procedure, the insolvency practitioner may, with the
sanction of the debtor and a majo rity in value of all the affec ted
parties, seek the appointment of a mediator in terms of the Med iation
Act, to facilitate negotiations between the debtor and the affe cted
parties towards the formulation of a restructuring plan.
 (2) Notwithstanding anything cont ained in the M ediation Act, th e
appointment of a mediator in terms of this article shall not af fect the
application of the other provisi ons of this Act and in the even t of any
inconsistency between this Act a nd the Mediation Act, the provi sions
of this Act shall prevail. 
Connection of 
proceedings.24. I f  t w o  o r  m o r e  a p p l i c a t i o n s  f o r  preventive restructuring are
brought before the Court, that are connected in respect of the subject-
matter thereof, or if the decision on one might affect the decision on
the other, the Court may order that the several proceedings be heard
and deliberated upon simultaneously.
PART V
PREVENTIVE RESTRUCTURING PROCEDURE
TITLE I: STANDARD PREV ENTIVE RESTRUCTURING 
PROCEDURE
Stay of 
individual enforcement actions.25. (1) Upon the filing of an appl ication requesting that the
Court place the debtor under sta ndard preventive restructuring
procedure and unless it is dismissed, and, in the event that the Court
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accedes to the request and issues an order to place the debtor under
standard preventive restructuring procedure, for a period of fo ur (4)
months following the date of the application:
(a) the execution of claims of a monetary nature against
the debtor, with the exclusion on ly of workers’ claims, and any
interest that may otherwise accrue thereon, shall be stayed;
(b) in respect of essential executory contracts entered
into prior to the order to place the debtor under preventive
restructuring procedure, no part y may exercise, to the detrimen t
of the debtor, any right of term ination, or any right to accele rate,
modify, withhold or suspend the performance of its obligations
in favour of the debtor, or any right to repossess any property
leased, sold or granted to the debtor, solely by virtue of the fact
that they were not paid by the debtor, or by virtue of the debtor’s
entry into preventive restructuring procedure;
Cap. 12.(c) no precautionary or executive act or warrant
mentioned in the Code of Organization and Civil Pr ocedure shall
be made or continued against the debtor or any property of the
debtor, including any warrant in terms of article 312 of the Code
of Organization and Civil Procedure;
(d) no arbitration proceeding shall be made or continued
against the debtor or any property of the debtor; and 
(e) notwithstanding anything contained in this sub-
article, no judicial proceedings  shall be commenced or continue d
against the debtor or its property, and any relevant court shal l
refuse any new judicial action against the debtor or shall ex
officio  order that ongoing judicial pro ceedings against the debtor
are stayed.
(2) The Court shall suspend, stay or disallow any act or
proceeding in terms of paragraph (d) or (e) of sub-article (1),  or the
execution of claims in terms of paragraph (a) of sub-article (1), as thecase may be, ex officio  upon becoming aware that a preventive
restructuring application has been made and has not been dismis sed, or
a preventive restructuring order is in force.
(3) The Court may, pursuant to a n application received in terms
of sub-article (4), at any time issue an order to lift all or a ny of the
protections granted t o the debtor in terms of sub-article (1), in whole or
in part, and subject to such terms as the Court deems fit to im pose.
(4) An application in terms of sub-article (2) may be made to th e
Court by:
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(a) the debtor, following, wher e applicable, a decision of
the officials of the debtor;
(b) the insolvency practitioner; or
(c) any creditor or creditors, p rovided that it is proven to
the satisfaction of the Court:
(i) that the protections gra nted no longer fulfil the
objective of supporting negotia tions on a restructuring
plan; 
( i i ) t h a t  t h e  p r o t e c t i o n s  g r a n t e d  s h a l l  c a u s e
substantial harm or financial distress to the creditor; 
(iii) that the protections granted shall cause the
creditor or class of creditors  to be unfairly prejudiced in
respect to any other creditor or class of creditors; or
(iv) that, where the creditor is asking the Court to
lift the protection granted in terms of sub-article (1)(b),
that a contract entered into between the debtor and the
creditor is not an essential executory contract.
Exclusions from 
stay of individual 
enforcement 
actions.(5) The provisions of sub-article (1), without prejudice to the
generality thereof, shall not apply insofar as these may be inconsistent
with, or insofar as these may be construed as limiting or restricting:
(a)  any action in rem  against a ship or sea vessel;
(b) any action in rem  against an aircraft or aircraft
engine;
Cap. 234. (c) any proceedings that may be instituted by the holder
of a registered mortgage or a privileged creditor over a ship orsea vessel, or any ot her actions or proceedings to which a ship or
sea vessel may be subject in terms of the Merchant Shipping Act ;
Cap. 503. (d) any proceedings that may be instituted by the holder
of a registered mortgage or a privileged creditor over an aircr aft
or aircraft engine, or any other actions or proceedings to whic h
an aircraft or aircraft engine may be subject in terms of theAircraft Registration Act;
(e) any warrant of arrest, whether in personam  or in rem ,
of a sea-going vessel;
(f) any warrant of arrest, whether in personam  or in rem ,
of an aircraft or aircraft engine;
VERŻJONI ELETTRONIKA
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Cap. 12.(g) any warrant of seizure of a commercial going
concern in terms of article 848A of the Code of Organization an d
Civil Procedure; 
Cap. 12.(h) any action to be brought in respect of a right stated in
any of the foregoing warrants, in terms of article 843 of the Code
of Organization and Civil Procedure; and
Cap. 484. (i) any rights of a securitisat ion creditor as defined in the
Securitisation Act.
Ranking of 
claims and 
formation of classes.26. (1) The insolvency practitioner shall, as soon as possible
following appointment, examine the assets, liabilities, and affairs of
the debtor and rank all claims against the debtor, present or f uture,
certain or contingent, ascertained or which may be due in damag es, by
reference to the priority and ranking of their debts in accorda nce with
the law being in f orce at the time.
(2) Upon preparing a ranking of the claims against the debtor in
terms of sub-article (1), the in solvency practitioner shall con vene a
meeting of the officials of the  debtor, for the purpose of:
(a) laying before them for their information, review and
confirmation, a comprehensive ranking of the claims against the
debtor;
(b) discussing which claims are to be selected for
inclusion within the scope of a restructuring plan, having regardto the provisions of article 17; and
(c) organising the said creditors, into classes formed,
having regard to the provisions of article 18.
Review of 
ranking of 
claims and formation of 
classes by 
creditors.27. (1) Within thirty (30) days /g3from his appointment, the
insolvency practitioner shall convene a meeting of the creditors of the
debtor, for the purpose of:
(a) laying before them for their information and review,
a comprehensive ranking of the claims against the debtor;
(b) laying before them for their information and review,
a list of the affected parties and the classes into which theaffected parties have  been organised; and
(c) allowing the creditors to request further information
as to the financial situation of the debtor and the expectation s of
the debtor with respect to the outcome of preventiverestructuring.
VERŻJONI ELETTRONIKA
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(2) No less than seven (7) days’ /g3notice shall be given of the
holding of the meeting of the creditors of the debtor, and the
insolvency practitioner may also  send a copy of the notice convening
the meeting to any officials of the debtor or other persons as may be
relevant to the content of the meeting.
(3) The insolvency practitione r shall publish notice of the
meeting of the creditors in two (2) daily newspa pers circulatin g wholly
or mainly in Malta, one published in Maltese and the other in English,at the expense of the debtor, not later than seven (7) days bef ore the
holding of the meeting:
Provided that the notice to be published in a newspaper may,
subject to the alignment of the applicable time-periods, be comprised
within the notice to be published in terms of article 12(2).
(4) The insolvency practitioner shall undertake to ensure that any
notice convening the meeting of creditors in terms of this arti cle shall
also be given to known creditors residing or based abroad.
Objection to 
ranking of 
claims and 
formation of classes.28. (1) Any affected party may object to the proposed ranking
of claims and the formation of classes, in writing, to the inso lvency
practitioner within twenty (20) days of the meeting held in ter ms of
article 27:
Provided that a failure to object to the proposed ranking of
claims shall not constitute the acceptance, by the affected par ty, of the
ranking of claims for purposes ext ernal to the preventive restr ucturing
proceedings, including but not limited to subsequent insolvency
proceedings.
(2) The insolvency practitioner shall investigate any objections
received to the proposed ranking of claims and the formation of
classes, and shall revise the ranking of claims and the formati on of
classes as it may deem  necessary in discussion with the officials of the
debtor, and shall notify any revisions to the affected parties.
(3) The insolvency practitioner’s ranking of claims and the
formation of classes in terms of  sub-article (2) may only be ch allenged
before the Court during the procedure for the confirmation of a
restructuring plan by the Court, a s contemplated in article 43( 1). 
Power to re-
convene creditors 
meeting.29. The insolvency practitioner may, if he deems appropriate,
having regard to any objections received and to the economic im pact
of any required revisions on the affected parties, convene anot her
meeting of the creditors of the debtor in terms of, and in acco rdance
with the requirements of article 27. 
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Termination or 
re-negotiation of 
contracts.30. (1) The officials of the debtor shall, in consultation with the
insolvency practitioner, review any executory contracts that ha ve been
entered into by and between the debtor and any counterparty, an d the
performance of which has not been concluded, and shall evaluate  the
termination or re-negotiation of  any such executory contracts a s shall
be conducive to the economic  viability of the debtor:
Provided that, where the debtor is a natural person, only
executory contracts entered into for the furtherance of the deb tor’s
trade, business, craft or profession may be considered for the purposes
of this article:
Cap. 452.Provided further that the re-negotiation and termination of
contracts of employment shall, notwithstanding anything contain ed in
this Act, continue to be regulat ed by the rules set out within the
Employment and Industrial Relations Act or other pertinent
legislation.
(2) Where it is identified that t he re-negotiation or termination of
an executory contract would benefit the debtor’s prospects ofeconomic viability, the insolve ncy practitioner may invite the
counterparty or counterparties to engage in bona fide negotiations with
the debtor, for the purpose of reaching a mutual agreement as t o the re-
negotiation or termination of the executory contract.
(3) If the parties are unable to come to a mutual agreement as t o
the re-negotiation or termination of the respective executory c ontract,
the debtor may propose to unilate rally terminate the executory contract
as part of the restructuring p lan submitted for confirmation in  terms of
Part VI.
(4) The unilateral termination of an executory contract shall
render the debtor liable only to  compensate the counterparty fo r losses
incurred, if any, as a result of t he unilateral termination, or  as may
otherwise be determine d in accordance with r egulations to be ma de by
the Minister, and a claim for su ch losses may be immediately in cluded
within the restructuring plan: 
Provided that the insolvency practitioner shall notify any
consequential revisions to the ranking of claims or the formati on of
classes to the officials of the debtor and to the affected part ies, in
writing and without undue delay.
(5) Upon the confirmation of the restructuring plan, any unilate ral
termination of any executory contract as contemplated therein, shall,
except where a longer period is stipulated within the restructu ring
plan, take effect automatically upon the earlier of: 
VERŻJONI ELETTRONIKA
A 637
( a ) t h e  l a p s e  o f  t h r e e  ( 3 )  m o n t h s  f r o m  t h e  d a t e  o f  t h e
confirmation of the restructu ring plan, notwithstanding any
appeal that may be filed aga inst the confirmation of the
restructuring plan; or 
(b) where the executory contract provides for a notice
period shorter than three (3) months, the said shorter period. 
(6) The provisions of this artic le shall not allow a debtor to
propose the unilateral termination of an executory contract whe re the
termination would result in the non-enforcement of any close-ou t
netting provision or any other provision in any contract provid ing for
or relating to the set-off or netting of sums due from each par ty to the
other in respect of mutual credits, mutual debts or other mutua l
dealings.
Acquisition of 
interim 
financing.31. (1) The officials of the debtor shall, in consultation with the
insolvency practitioner, review whether the procurement of inte rim
financing shall be necessary in order to preserve the economic
viability of the debtor until the confirmation of a restructuri ng plan. 
(2) If interim financing is deeme d to be necessary, the official s of
the debtor may solicit proposals from third parties willing to provide
the debtor with interim financi ng, and shall forward any propos als they
are desirous of accepting to the insolvency practitioner, inclu ding any
terms pursuant to which the interim financing is proposed. 
(3) Where the insolvency practit ioner is satisfied that the
procurement of interim financing is necessary in order to prese rve the
economic viability of the debtor until the confirmation of arestructuring plan and that the acceptance of the proposed terms would
not infringe any provisions of th is Act, the insolvency practit ioner
shall:
(a) if the proposed interim financing is unsecured,
approve the acquisition of t he interim financing; or 
(b) if the proposed interim financing is secured, convene
a meeting of the affected parties, or classes thereof, that would
be adversely impacted by the acquisition of the proposed secure d
interim financing, for the purpose of laying before them, and
holding a vote on, the proposed  terms for the acquisition of
secured interim financing.
(4) Where a meeting is convened in terms of sub-article (3)(b), no
less than seven (7) days’ notice shall be given for the holding  of the
meeting, and the insolvency practitioner shall also send a copy  of the
notice convening the meeting to any officials of the debtor.
VERŻJONI ELETTRONIKA
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(5) The acquisition of secured interim financing shall be
approved subject to the agreement of not less than fifty per ce nt (50%)
of the affected parties in each class, by reference to the valu e of the
claims represented thereby.
(6) Any interim financing approved in terms of this article shal l
be acquired by the debtor and the claim for repayment thereof m ay be
immediately included within the r estructuring plan, provided th at the
repayment of interim financing shall, in all cases, not be subj ect to any
reduction within the scope of a restructuring plan.
(7) The insolvency practitioner shall notify any revisions that
arise consequent to this article, to the ranking of claims or t he
formation of classes to the officials of the debtor and to the affected
parties, in writi ng and without undue delay.
Formulation of 
the restructuring 
plan.32. (1) The officials of the debtor shall, in consul tation with the
insolvency practitioner, formulate a restructuring plan prepare d in
accordance with the requirements of the Second Schedule, to be
submitted for adoption by the affected parties:
Provided that any creditor of t he debtor may also prepare a
restructuring plan, or proposals for inclusion within a restruc turing
plan, and submit these to the insolvency practitioner for theconsideration of the debtor.
(2) As may be conducive to the formulation of a restructuring
plan, the insolvency practitioner  may, at the request of the debtor,
invite an affected party, or class of affected parties, to enga ge in bona
fide discussions with the debtor in connection with any restructuringproposals that the insolvency practitioner, upon consultation w ith the
debtor, may consider to be appr opriate for inclusion within the
restructuring plan, for the purpose of hearing the views of the  affected
parties.
(3) A restructuring plan prepared in terms of this article may,
subject to the agreement of the debtor, be submitted by the ins olvency
practitioner for adoption by the affected parties in terms of P art VI of
this Act, provided that it is reasonably apparent that:
(a) affected parties with a sufficient commonality of
i n t e r e s t  i n  t h e  s a m e  c l a s s  a r e  t r e a t e d  e q u a l l y ,  a n d  i n  a  m a n n e r
proportionate to the ir claim; and 
(b) any new financing proposed in the restructuring plan
is necessary to implement the restructuring plan and does notunfairly prejudice the interests of the affected parties.
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Duration of 
standard 
preventive restructuring.33. (1) The preventive restructuring order placing the debtor
under standard preventive restructuring shall automatically ter minate
upon the lapse of four ( 4) months from the date of the applicat ion filed
in terms of article 9, provided that the duration of standard p reventive
restructuring may be extended in terms of this article until a maximum
of twelve (12) months from the date of the application.
(2) The insolvency practitioner may by no later than fourteen (14)
days before the termin ation of the previous  order, file an appl ication to
the Court to extend th e order for a further period of four (4) months
following the termination thereof, subject to the agreement of the
debtor:
Provided that the application ma y also request that the stay of
individual enforcement actions in terms of article 25 be extend ed, in
whole or in part, for a further period of four (4) months follo wing the
termination of the order, or until the termination of the preve ntive
restructuring order in terms of  article 34, whichever is earlie r.
(3) The application shall, as far as possible, give the full fac ts,
circumstances and reasons giving rise to the requirement for an
extension and, where applicable, the requirement for an extende d stay
of individual enforcement actions, as well as the reasons for w hich an
extension would be reasonably justified in the context of the f inancial
and economic situation of the debtor and the interests of his
stakeholders.
(4) The Court shall, prior to the date of the automatic terminat ion
of the order, issue a decision on whether to extend the prevent ive
restructuring procedure and, where applicable, whether to also extend
the stay of individual enforcement actions:
Provided that the Court shall onl y renew the stay of individual
enforcement actions if it is satisfied that the renewal would b e
reasonable, having regard to the debtor’s prospects of economicviability, the interests of the affected parties, and the likel ihood that a
renewal would facilitate the su ccessful negotiation and confirm ation of
a restructuring plan, and would generally not be unduly prejudi cial to
the interests of the affected creditors.
(5) The insolvency practitioner shall notify the extension of
preventive restructuring procedur e to the affected parties, the
competent authority and the Regis trar of Courts, at the expense of the
debtor, without undue delay.
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Pre-emptive 
termination of 
standard preventive 
restructuring.34. (1) If, at any time during which a standard preventive
restructuring order is in force, it results to the insolvency p ractitioner:
(a) that, after consulting with the officials of the debtor,
the affairs of the debtor have improved to the extent that the
debtor is no longer exposed to a likelihood of insolvency;
(b) that, after consulting with t he officials of the debtor,
the affairs of the debtor have deteriorated to the extent that the
debtor does not have reasonable pr ospects of economic viability ;
or
(c) that, after consulting with the officials of the debtor
and any creditors of the debtor as the insolvency practitioner
may deem reasonably appropriate, the insolvency practitioner
has established that a significant proportion of the debtor’s
creditors do not support the continuation of negotiations andshall prevent the debtor from obtaining the approvals necessary
for the confirmation of a restructuring plan,
the insolvency practitioner sh all forthwith make a request by
application to the Court for the  termination of the preventive
restructuring procedure, containi ng detailed and comprehensive
reasons therefor.
(2) At any time during which a standard preventive restructuring
order is in force, the officials  of the debtor, if they are sat isfied that the
affairs of the debtor have improved to the extent that the debt or is no
longer exposed to a likelihood of  insolvency or convinced that the
affairs of the debtor have deter iorated to the extent that the debtor does
not have reasonable p rospects of economic viability, may submit  a
request by application to the Court confirming that they are so  satisfied
or convinced, and requesting that the Court issue an order for the
termination of the preventive restructuring procedures, provide d that
the Court shall not without just cause proceed to make an order
acceding to or declining the application without having first h eard the
insolvency practitioner, ins ofar as reasonably possible.
(3) At any time during which a standard preventive restructuring
order is in force, any creditor or creditors of the debtor, if they believe
that there would be no purpose to the continuation of standard
preventive restructuring procedures on the basis:
(a) that the debtor is no longer exposed to a likelihood of
insolvency or no longer has re asonable prospects of economic
viability; or
(b) that a significant proportion of the debtor’s creditors
VERŻJONI ELETTRONIKA
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do not support the continuation of negotiations and shall not
provide the approvals necessa ry for the confirmation of a
restructuring plan,
may, after informing the insolven cy practitioner, submit an app lication
to the Court requesting it to issue an order for the terminatio n of the
preventive restructuring proced ures, provided that the Court shall not
proceed to make an order acceding to or declining the applicati on
without having first heard the insolvency practitioner, insofar  as
reasonably possible.
(4) In the event that the Court accedes to an application for th e
pre-emptive termination of a sta ndard preventive restructuring order in
terms of this article, it shal l make such provisions and condit ions, as it
may consider necessary in the c ircumstances of the case.
TITLE II: PRE-FORMULATED P REVENTIVE RESTRUCTURING 
PROCEDURE
Common 
applicability of 
provisions.35. The provisions of articles 25, 30 and article 34, as applicable
to a standard preventive res tructuring procedure shall, mutatis
mutandis , apply to a pre-formulated preventive restructuring
procedure.
Approval of terms of pre-formulated 
restructuring 
plan.36. (1) As may be conducive to the approval of the terms of a
pre-formulated restructuring plan, the insolvency practitioner may, at
the request of the debtor, invite an affected party, or class o f affected
parties, to engage in bona fide  discussions with the debtor in
connection with the pre-formulated  restructuring proposal, for the
purpose of hearing the views of the affected parties.
(2) A pre-formulated restructuring plan may, subject to the
agreement of the debtor, be submitted by the insolvency practit ioner
for adoption by the affected parties in terms of Part VI of thi s Act,
provided that it is reasonably apparent that:
(a) affected parties with a sufficient commonality of
i n t e r e s t  i n  t h e  s a m e  c l a s s  a r e  t r e a t e d  e q u a l l y ,  a n d  i n  a  m a n n e r
proportionate to their claim; and 
(b) any new financing proposed in the restructuring plan
is necessary to implement the restructuring plan and does notunfairly prejudice the interes ts of the affected parties.
Duration of pre-
formulated 
preventive restructuring.37. The preventive restructuring order placing the debtor under
pre-formulated preventive restructuring shall automatically terminate
upon the lapse of four ( 4) months from the date of the applicat ion filed
in terms of article 9.
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Conversion of 
pre-formulated 
preventive restructuring 
procedure into 
standard preventive 
restructuring 
procedure.38. (1) The insolvency practitioner may, at any time during
which a pre-formulated preventive restructuring order is in for ce, file
an application to the Court to convert the pre-formulated preve ntive
restructuring procedure into sta ndard preventive restructuring,  if it
results to the insolvency practitioner that:
(a) after consulting with the officials of the debtor, the
economic viability of the debtor i s more likely to be preserved  or
restored if it is placed under st andard preventive restructurin g
procedure; or
(b) after consulting with the c reditors of the debtor, a
significant proportion are not in favour of the pre-formulated
restructuring plan, such as is l ikely to prevent the debtor fro m
obtaining the approvals necessary for the confirmation thereof,and the insolvency practitioner is of the view that standardpreventive restructuring is more likely to result in the succes sful
negotiation and confirmati on of a restructuring plan.
(2) The insolvency practitioner shall annex to an application
made in terms of sub-article (1):
(a) any information or documentation previously
submitted, in terms of articles  10(a) to 10(g), and article
10(i)(iii), that, following the initial submission thereof, req uires
update or revision; and
(b) a statement in terms of article 10(h)(i), which should
also include details as to how the conversion of the pre-
formulated preventive restruct uring procedure into standard
preventive restructuring procedure shall improve the debtor’s
likelihood of preserving or restoring its economic viability.
(3) In the event that the Court accedes to the request and issue s an
order to convert the pre-formulate d preventive restructuring pr ocedure
into a standard preventive restructuring procedure, for the pur pose of
determining the maximum duration of any stay of individualenforcement actions in terms of article 25(1), and the duration  of the
order placing the debtor under standard preventive restructurin g in
terms of article 33(1), the period shall be deemed to have star ted to run
on the day on which the aforementioned stay and order commenced
during the pre-formulated preventive restructuring procedure. 
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PART VI 
CONFIRMATION OF RESTRUCTURING PLAN 
Affected parties 
to vote on adoption of 
restructuring 
plan.39. (1) A restructuring plan formulated in terms of this Act,
other than a pre-approved restructuring plan that has already a ttained
the written approval of the affected parties as necessary for t he
purposes of confirmation in terms of article 41 or 42, shall be
submitted for adoption at a meeting of the affected parties to be
convened by the insolvency practitioner.
(2) Not less than seven (7) days notice shall be given to the
affected parties of the holding of the meeting, and the insolve ncy
practitioner shall also send a copy of the notice to any offici als of the
debtor:
Provided that, in the event of  a pre-approved restructuring
proceeding, it shall be sufficien t for the insolvency practitioner to
provide notice to the affected p arties that a pre-approved plan  has
attained the written approval of the affected parties as necess ary for the
purposes of approval in terms of articles 41 or 42, which notic e shall be
given not less than seven (7) days prior to the filing of an ap plication to
the Court for the confirmation of  the restructuring plan in terms of
article 41(2) or 42(2), as the cas e may be, such that any disse nting
creditor may, if desirous, communicate the grounds pursuant to which
they are in opposition to t he adoption of the restructuring pla n.
(3) The notice shall include a copy of the restructuring plan to  be
submitted for adoption at the mee ting, for the consideration of  the
affected parties, or, in the event of pre-approved restructuring
proceedings, a copy of the pre-approved restructuring plan. 
Procedure of 
meeting. 40.  (1) At the meeting for the adoption of the restructuring
plan, the affected parties shall have the opportunity to discuss the
restructuring plan and request c larification on the contents th ereof
from the insolvency practitioner.
(2) The affected parties shall then vote on the adoption of the
restructuring plan, by show of hands, and the insolvency practi tioner
shall record the result of the votes taken.
(3) Any affected party may delay the submission of their vote, f or a
maximum period of seven (7) day s to be reckoned from the day
following the meeting, in which case their vote shall be submit ted, in
writing, to the insolvency pract itioner before t he expiration o f the said
seven (7) day period.
(4) The written communication of  a vote transmitted by the
affected party to the insolvency  practitioner in terms of sub-a rticle (3),
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must, on pain of nullity, expr essly and unequivocally state whether the
affected party wishes to adopt or reject the restructuring plan , and such
vote may be validly submitted to the insolvency practitioner
electronically. 
(5) Notwithstanding any agreemen t to the contrary, any affected
party that does not vote in the manner aforesaid shall not be c onsidered
for the purpose of assessing whet her the restructuring plan has
received the approval necessary for adoption by the affected pa rties in
terms of article 41 or for the restructuri ng plan to be crammed  down in
terms of article 42.
Adoption of 
restructuring 
plan.41. (1) The restructuring plan shall be adopted by the affected
parties if it is approved by not less than two-thirds (2/3) of the affected
parties in each class, by reference to the value of the claims
represented thereby.
(2) Where a restructuring plan is adopted in terms of this artic le,
the insolvency practitioner sha ll, without delay, file an appli cation to
the Court for the confirmation of  the restructuring plan so that it may
be made effective and binding on all affected parties for all p urposes of
law, to which the insolvency pra ctitioner shall an nex a copy of  the
adopted restructuring  plan and proof of the adoption thereof by  the
affected parties, as well as the grounds, where these are expressly
stated, pursuant to which any dis senting creditors have voted a gainst
the adoption of the restructuring plan. 
Cross-class 
cram-down.42. (1) If the restructuring plan is not adopted by the affected
parties in terms of the thresholds prescribed in article 41, th e
restructuring plan shall notwithstanding be deemed to be adopte d if, in
the view of the insolvency practitioner, the restructuring plan  satisfies
at least the following conditions:
(a) the restructuring plan satisfies the best-interest-of-
creditors test;
(b) the restructuring plan will not result in any class of
affected parties receiving economic value in excess of the full
amount of its claims;
(c) the restructuring plan ensures that any dissenting
class of affected parties is tr eated at least as favourably as any
other class of affected parties whose claims would, if the norm al
ranking of liquidation priorities were to be applied, rank pari
passu  with the claims of the dissenting class, and more
favourably than any other class of  affected parties whose claim s
would, if the normal ranking of liquidation priorities were to be
applied, rank below the claims  of the dissenting class; and
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(d) the restructuring plan has been approved for adoption
by at least one (1) class of affected parties who would, if the
normal ranking of liquidation pr iorities were to be applied,
receive payment of their claims in whole or in part. 
(2) Where a restructuring plan is adopted in terms of this artic le,
the insolvency practitioner shall, subject to the agreement of the debtorand without undue delay, make an application to the Court for t he
confirmation of the restructuring plan so that it may be made e ffective
and binding on all affected partie s for all purposes of law, to  which the
insolvency practitioner shall annex a copy of the adopted restr ucturing
plan and appropriate supporting doc umentation and statements as  may
be necessary so as to evidence that the restructuring plan has satisfied
the criteria for adoption in terms of sub-article (1), as well as an
identification of the dissenting creditors and the grounds, where these
are expressly stated, pursuant to which any such dissenting cre ditors
have voted against the adoption of the restructuring plan.
Confirmation of 
restructuring 
plan by the 
Court.43. (1) The Court shall, within thirty (30) days from the date of
receipt thereof, decide on whether to approve or reject the
restructuring plan:
Provided that, insofar as possible, the Court shall, before so
doing, hear from the officials of  the debtor and of any affecte d parties,
as it may deem appropriate, by serving them with a notice of th e
proceedings.
(2) The Court shall only approve and confirm a restructuring pla n
if it is satisfied that:
(a) the restructuring plan h as reasonable prospects of
ensuring that the debtor’s economic viability is preserved orrestored; 
(b) the restructuring plan has been approved for adoption
by the affected partie s in accordance with  the terms of this Ac t;
(c) the formation of voting cl asses, and the attribution of
voting rights thereto, has been performed in accordance with th e
terms of this Act;
(d) the restructuring plan ensures that affected parties
with a sufficient commonality of interest in the same class aretreated equally, and in a manne r proportionate t o their claim; 
(e) any new financing proposed in the restructuring plan
is necessary to implement the restructuring plan and does notunfairly prejudice the interests of the affected parties; and
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(f) notification of the restr ucturing plan has been given
to all affected parties in terms of article 39.
(3) Following receipt of an application for the confirmation of a
restructuring plan, the Court may request any explanations or
clarifications as it may conside r appropriate for the formulati on of its
decision, which shall be provided to it, either verbally or in writing, as
the Court may direct.
(4) If a dissenting creditor h as opposed the approval of the
restructuring plan, on the grounds of, either:
(a) the failure of the restru cturing plan to satisfy the
best-interest-of-creditors test; or
(b) a breach of the conditions for a cross-class cram-
down in terms of article 42(1),
the Court shall appoint an expert, who shall be an insolvency
practitioner, to, within thirty (30) days from the date of his
appointment, carry out, or cause the carrying out, of such valuations
and other procedures as may be necessary or required so as to e nable
the expert to submit to the Court  his report in writing regarding the
subsistence, or otherwise, of the relevant grounds for opposition, andmotivating the basis on which his conclusions are founded:
Provided that the insolvency pr actitioner who is so appointed
may, with the approval of the Cour t, appoint any such experts a s may be
deemed necessary to assist in carrying out valuations and otherprocedures, and any costs incurr ed for this proc ess, shall, if the
opposition is unfounded, be borne by the dissenting creditor, o r, if the
grounds for opposition are found to subsist, by the debtor.
(5) Without prejudice to sub-articl e (1), where a restructuring plan
is opposed on the grounds referred to in sub-article (4)(a) or (4)(b), the
Court shall, within thirty (30) days from the date of receipt o f a final
report from the expert appointed in terms of sub-article (4), m ake a
determination regarding the subsistence or otherwise of the sai d
grounds, and the Court shall reject the restructuring plan if e ither of the
said grounds are determined to subsist.
(6) Upon the Court’s approval of t he restructuring plan, it shal l
become effective and binding on all affected parties for all purposes oflaw.
Renegotiation of 
rejected 
restructuring 
plan.44. (1) Where the Court rejects a restructuring plan, it may
propose amendments to the restru cturing plan to the officials o f the
debtor and the affected parties, indicating the Court’s readine ss to
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confirm the plan should those am endments be approved by a separ ate
vote of the affected parties held in accordance with articles 4 1 or 42.
 (2) Upon rejection of a restructuring plan, the officials of th e
debtor may, in consultation with the insolvency practitioner an d
otherwise in terms of this Act, formulate a new, or revised,
restructuring plan prepared in accordance with the requirements  of the
Second Schedule, to be submitte d for adoption by the affected parties.
(3) Any preventive restructuring order issued by the Court shall
continue to apply until the auto matic or pre-emptive terminatio n
thereof in terms of this Act, an d any right to request an exten sion of
the preventive restructuring orde r may be duly exercised by the
competent party. 
 PART VII 
APPEALS 
Appeals against 
decision of the Court.
Cap.12.45. (1) Any decision of the Court within the context of a
preventive restructuring procedur e, including to approve or rej ect a
restructuring plan, shall be subject to appeal to the Court of Appeal,
constituted in terms of article 41(6) of the Code of Organisati on and
Civil Procedure, hereinafter ref erred to in this article as the  "Court of
Appeal":
Provided that the Court of App eal may, notwithstanding that it
has accepted an appeal made against the confirmation of a
restructuring plan, uphold the decision of the Court to confirm  a
restructuring plan, and provide s uch remedy as necessary to ens ure
that the appellant is protected from the effects of the restructuring plan,or duly compensated, such that the appellant:
(a) shall be entitled to receive an amount at least
equivalent to that which the appe llant would have been entitled
to if the normal ranking of liquidation priorities were applied , or
in the event of the next-best-alternative scenario, if therestructuring plan had not been confirmed; and
(b) shall be treated at least as favourably as any other
creditor within any class of aff ected parties whose claims would,
if the normal ranking of liquidation priorities were to be appl ied,
rank pari passu  with the claims of the appellant, and more
favourably than any other creditor within any class of affectedparties whose claims would, if t he normal ranking of liquidatio n
priorities were to be applied, rank below the claims of the
appellant.
(2) An appeal made in terms of sub-article (1), may be made by
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the debtor by means of an application submitted to the Court of  Appeal
within twenty (20) days of the Court’s decision.
(3) An appeal made in terms of sub-article (1), may also be mad e
by any interested party, by mean s of an application submitted t o the
Court of Appeal within twenty (20) days of the Court’s decision :
Provided that the Court of Appeal shall, before hearing such
an appeal, ascertain the interes t of the appellant in the decis ion against
which the appeal has been filed.
( 4 )  A n y  a p p e a l  m a d e  i n  t e r m s  o f  t h i s  a r t i c l e  s h a l l  h a v e  n o
suspensive effects on the execution of that decision, or on the
execution of any restructuring pl an approved within the prevent ive
restructuring procedure in which that decision was made.
Appointment of 
curator to give 
his consent on behalf of a 
creditor.46. (1) Upon the confirmation of a restructuring plan by the
Court, and if the restructuring plan identifies the need to obtain the
consent of a creditor prior to t he transfer of a ny asset or ass ets, and, or,
where the creditor is required to appear on any pertinent publi c deed so
as to give consent to the cancellation of, or a reduction in, any cause of
preference and the registration of  the same, enjoyed by the cre ditor
over the said asset or assets, th e debtor may, if he is, or if the officials
of the debtor are, of the opinio n that the consent of the said creditor is,
or may be withheld, make an a pplication to the Court for the
appointment of a curator.
(2) A curator appointed in terms of this article may under the
authority of the Court, give his consent to the transfer of ass ets and, or,
appear on any pertinent public deed to consent, for and on beha lf of the
creditor referred to in sub-arti cle (1), to the cancellation of , or
reduction in, any cause of preference, and the registration of the same,
enjoyed by the said creditor, on condition that the curator receives thatportion of the proceeds of the sale of assets which, in terms o f law and
subject to the restructuring pla n, pertains to the said creditor, and
which shall be applied in his fa vour in terms of sub-article (3 ).
(3) The curator shall receive, for and on behalf of the creditor
referred to in sub-article (1), that portion of the proceeds of  the sale of
assets referred to in sub-article (2) which, in terms of law an d subject
to the restructuring plan, pertains to the said creditor, and s hall ensure
that such funds are either distr ibuted to the said creditor or,  if this is
not reasonably practicable, deposited in Court for the benefit of the
said creditor.
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PART VIII 
MISCELLANEOUS
Fraud. 47. If at any time it appears that any actions of the debtor during  a
preventive restructuring order or otherwise in connection with the
process of preventive restructur ing, has been carried on with i ntent to
defraud any creditor of the debtor, the Court, on the application of the
insolvency practitioner or of any creditor of the debtor, may, if it thinks
proper so to do, declare that an y persons who were knowingly pa rties
to the carrying on of the business in the manner aforesaid be
personally responsible, without any limitation of liability, fo r all or any
of the debts or other liabilitie s of the debtor as the Court ma y direct.
Filing of 
documents to the Registrar for 
registration.48. (1) Upon the filing of a preventive restructuring
application, the issue of a preve ntive restructuring order, the
appointment and termination of the appointment of an insolvency
practitioner and the appointment of a replacement thereof, the filing of
an application for the termination of a preventive restructurin g order,
or the order of the Court termin ating the preventive restructur ing
procedure for any reason, the Re gistrar of Courts shall forthwi th
submit a copy of any such applic ation, Court order or other rel evant
document to the com petent authority.
(2) Notwithstanding the provisions of sub-article (1), a copy of
the restructuring plan, as may be attached to an application or  order,
shall not be delivered to the Reg istrar together with such application or
order.
Relationship 
with other laws.49. (1) The provisions of this Act shall not apply insofar as
these may be inconsistent with, or insofar as these may be cons trued as
limiting or restricting, the appl ication of the following laws or
instruments, or any transposing legislation, as may be amended from
time to time:
(a) the Convention on International Interests in Mobile
Equipment and its Protocols on Matters Specific to Aircraft
Equipment that was opened for signature at Cape Town on 16
November 2001, as transposed or as enforceable in terms of
Maltese law; 
(b) Directive 98/26/EC of the European Parliament and
of the Council of 19 May 1998 on set tlement finality in payment
and securities settle ment systems, as transposed in Maltese law ; 
(c) Directive 2002/47/EC of the European Parliament
and of the Council of 6 June 2002 on financial collateralarrangements, as transposed in Maltese law; 
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(d) Regulation (EU) No. 648/2012 of the European
Parliament and of the Council of 4 July 2012 on OTC
derivatives, central counterparties and trade repositories; 
(e) the safeguarding requirements of funds for:
(i) payment institutions laid down under Directive
(EU) 2015/2366 of the European  Parliament and of the
Council of 25 November 2015 on payment services in the
internal market, amending Directives 2002/65/EC, 2009/
110/EC and 2013/36/EU and Regulation (EU) No 1093/
2010, and repealing Directive 2007/64/EC, as transposed
in terms of Maltese law; and
(ii) electronic money institutions laid down under
Directive 2009/110/EC of the European Parliament and ofthe Council of 16 September 2009 on the taking up, pursuitand prudential supervision of  the business of electronic
money institutions amendi ng Directives 2005/60/EC and
2006/48/EC and repealing Directive 2000/46/EC, astransposed in terms of Maltese law;
S.L. 459.01. (f) the Financial Collatera l Arrangements Regulations
and any financial collateral arrangement in terms thereof;
Cap. 459. (g) the Set-Off and Netting on Insolvency Act;
Cap. 234. (h) the Merchant Shipping Act; and
Cap. 503. (i) the Aircraft Registration Act.
(2) The provisions of this Act shall:
(a) not apply where any applicable law creates a separate
patrimony in the hands of a pers on or where a person is vested
with ownership, has registered in his name, holds, exercisescontrol or powers of disposition over property subject to
fiduciary obligations;
(b) have no impact on any accrued occupational pension
entitlements.
Powers to make 
regulations.50. (1) In addition to the matters on which the Minister is
empowered to prescribe regulations under the provisions of this  Act,
the Minister shall additionally have the power to make such
regulations for the better carrying out of any of the provision s of this
Act as the Minister may also, on  consultation with the competen t
authority, deem necessary, required or appropriate to give effe ct to the
object and purpose of the Act.
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(2) Without prejudice to the generality of sub-article (1), the
Minister shall make regulations for the use of electronic means  of
communication in the course of  the procedures established in
accordance with this Ac t, including regarding:
(a) the presentation of requests and applications;
Cap. 13. (b) the submission of a proposed restructuring plan, in
accordance with this Act or the  submission of the proposed term s
of a debt agreement or bankrupt cy order in accordance with the
Commercial Code;
(c) notifications to the creditors;
(d) holding of hearings and meetings;(e) voting at all hear ings or meetings; and
(f) the submission of contestations, objections and
appeals. 
Conflict 
between texts and languages.51. (1) In case of conflict between the Maltese text and English
text of this Act, the Engl ish text shall prevail. 
(2) Any rules or regulations made pursuant to any provision of
this Act shall be made in the Maltese language and in the Engli sh
language; however where in exceptional cases the use of the Mal tese
language would be difficult due  to technical terminology, such rules or
regulations may be made in the English language only.
FIRST SCHEDULE – 
PREVENTIVE RESTRUCTURING FILING DECLARATION
Preventive restructuring filing declaration 
A preventive restructuring filing declaration to be formulated in
terms of this Ac t shall contain:
(a) an estimation of  the insolvency practitioner’s costs
by way of remuneration in res pect to services rendered in
relation to preventive restructur ing proceedings entered into i n
terms of this Act, including the basis upon which the estimatio n
has been formulated;
(b) a statement of the insolvency practitioner, or, in the
case of an insolvency practitioner being a legal person, a
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statement by the principal responsible for directing the fulfilment
of the engagement by the lega l person, confirming that the
insolvency practitioner is not s ubject to any conflict of inter est
with respect to the debtor or th e debtors’ creditors or, in the  event
of a potential conflict of intere st, the proposed measures that  the
insolvency practitioner intends to apply in order to prevent an y
risk of the conflict of interest  having any bearing, on either the
fulfilment of the insolvency pra ctitioner’s responsibilities, o r on
the preventive restructuring; 
Act No. XXV of 
2022.(c) a confirmation that the insolvency practitioner is
lawfully authorised to act as such in terms of the Insolvency
Practitioners Act, 2022 and that the insolvency practitioner
possesses the adequate resources  so as to appropriately carry out
its functions in terms of this Act, having regard to the
circumstances of the debtor and its creditors.
SECOND SCHEDULE – 
CONTENTS OF RESTRUCTURING PLAN
1. Contents of the restructuring plan:
A restructuring plan formulated in terms of this Act shall cont ain, at
minimum, the following information:
(a) The name, identificatio n number, business address,
and contact information, including at least an electronic mail
address, of the debtor;
(b) a statement of the debtor's assets and liabilities at the
time of the filing of the restructuring plan, correct up to at least
one (1) month of the submission of the restructuring plan foradoption, including a value attributed to the listed assets and
liabilities in the r easoned opinion of the officials of the deb tor; 
(c) a description of the economic situation of the debtor
including, in particular, whether it has any employees and the
circumstances of such employment, and the full facts,circumstances and reasons giving rise to the requirement for an
extension and, where applicable , the requirement for an extende d
stay of individual enforcement actions, as well as the reasons for
which an extension would be reasonably justified in the context
of the financial and economic situation of the debtor and the
interests of its stakeholders;
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(d) a reasoned statement on how the restructuring plan
has a reasonable prospect of preventing the insolvency of the
debtor and ensuring the economic  viability of the business,
including the necessary pre-conditions for the success of the
restructuring plan;
(e) a list of the affected parties, whether named
individually or by reference to the classes thereof, as well as  the
claims or interests covered by the restructuring plan, and
including, where available, the geographical address and
electronic mail address for each affected party;
(f) the classes into which the affected parties have been
grouped, for the purpose of adopting the restructuring plan, andthe respective values of claims and interests in each class;
(g) where applicable, the creditors and claims thereof,
whether named individually or d escribed by categories of debt,
which have been excluded from the restructuring plan, together
with a description of the reasons why such claims have beenexcluded, and including, where av ailable, the geographical
address and electronic mail address for every such creditor;
(h) the name, identificati on number, business address,
and contact information, including at least an electronic mail
address, of the insolvency practitioner; 
(i) the manner in which the r estructuring plan proposes
to restructure the debtor’s bus iness, including, in particular:  
(i) the measures aimed at re structuring the debtor's
business that include changi ng the composition, conditions
or structure of a debtor's assets  and liabilities or any other
part of the debtor's capital structure, such as sales of assets
or parts of the business, the sale of the business as a goingconcern, as well as any necessary operational changes, or a
combination of those elements; 
(ii) where applicable, the proposed duration of any
proposed restructuring measures;
(iii) the arrangements with regard to informing and
consulting the employees’ representatives in accordance
with applicable law; 
(iv) where applicable, the expected overall
consequences of any proposed  restructuring measures as
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regards employment, such as dismissals, short-time
working arrangements, or similar arrangements;
(v) a projection of how the confirmation of the
restructuring plan would imp act the debtor’s financial
position, including projections  covering the debtor’s
expected financial position s hould the restructuring plan
not be confirmed;
(vi) any new financing anticipated as part of the
restructuring plan, and the reasons why the new financingis necessary to implement  the restructuring plan;
(vii) the proposed management team of the debtor
during and following the implementation of therestructuring plan, if confirmed; and
(viii) the information which will be made available
by the debtor to the affected p arties following the approval
of the restructuring plan, including the duration and
periodicity for disclosure.
2. Annexes 
The following documents shall be annexed to the restructuring plan:
(a) where the affected parties are to take over shares or
membership rights or holdings in  a legal person, the plan shall  be
accompanied by a waiver of pre-emption rights or any other
documents as may be necessary for  the transfer of shares to be
permitted;
(b) where a third party has a ssumed obligations vis-à-vis
the affected parties in the ev ent of approval of the plan, the plan
shall be accompanied by the thir d party’s statement of consent;
and
(c) where the restructuring plan provides for the
restructuring of the rights of t he affected party with regard t o the
priority of secured rights over the assets of the debtor, the p lan
shall be accompanied by a stat ement of consent of any parties
that may be ceding priority.
3. Checklist for restructuring plans 
The competent authority shall be responsible to develop and
maintain a comprehensive checklist for restructuring plans, ada pted to
the needs of small and medium-si zed enterprises, which checklist shall
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be publicly available on a website maintained by the competent
authority. 
CONSEQUENTIAL AMENDMENT
Amendment to 
the Malta 
Business Registry 
(Establishment 
as an Agency) Order. 
S.L. 595.27.52. Immediately after article 9 of the Malta Business Registry
(Establishment as an Agency) Order, there shall be added the fo llowing
new article:
Passed by the House of Representatives at Sitting No. 70 of the 14th
December, 2022."Establishment of the 
Insolvency and Receivership 
Service.9A. (1) The Agency shall establish and organise its
units and sections as appropria te in order to exercise its
functions, and shall establish inter alia , a section to be
known as the Insolvency and Receivership Service. 
Act No. XXIV 
of 2022.
Act No. XXV 
of 2022.(2)  The section to be known as the Insolvency and
Receivership Service shall ha ve those functions, duties and
powers assigned to it and to the official receiver by the Act,
the Pre-Insolvency Act, 2022, the Insolvency Practitioners
Act, 2022 and any applicable laws and regulations.".
ANĠLU FARRUGIA
Speaker
RAYMOND SCICLUNA
Clerk of the House of Representatives
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