Price Club companies owe over Lm2m to HSBC

The First Hall of the Civil Court yesterday declared that HSBC Bank (Malta) Ltd was owed over Lm2 million by Price Club (Swatar) Limited, Price Club Operators Ltd and Price Club (Burmarrad) Ltd.

The court however ruled it could not order Price Club Operators Ltd to pay rent as the company was in liquidation.

The bank claimed it was owed Lm2,646,380.48 by Price Club (Swatar) Ltd, adding that the company itself had admitted this in a notarial deed of August 2001.

Price Club Operators Ltd leased from Price Club (Swatar) Ltd the premises known as Price Club, in Swatar, against payment of Lm210,000 a year. Price Club Operators Ltd was no longer trading and in March 2002, its shareholders had placed the company in liquidation.

The court, presided over by Mr Justice Tonio Mallia, also heard that Price Club (Burmarrad) Ltd also owed the bank Lm2,646,380.48. Again, the company itself had, in a notarial deed of August 2001, admitted that such a sum was indeed due.

In turn, Price Club Operators Ltd leased from Price Club (Burmarrad) Ltd premises known as Price Club in Burmarrad against payment of rent to the tune of Lm80,000 a year.

HSBC pleaded that as it was a creditor of both Price Club (Swatar) Ltd and Price Club (Burmarrad) Ltd, it was therefore entitled to sue the debtors of its debtors, namely Price Club Operators Ltd for rent due.

Mr Justice Mallia noted that the bank had already proceeded to the judicial sale by auction of both Price Club outlets.

Both premises had been acquired by the bank itself in the auction. As a result, the amount owing to the bank had diminished.

Price Club (Burmarrad) Ltd now owed the bank Lm1,105,630.94 while Price Club (Swatar) Ltd owed Lm1,105,630.94.

As Price Club Operators Ltd was in liquidation the court ruled it could not order any payments to be made by this company.