Appeals Court confirms judgment against PriceClub directors

An Appeals Court has upheld a judgment where three directors of PriceClub Operators Ltd were found to be personally and unlimitedly responsible for the debts incurred by Priceclub Operators Ltd.

The original judgment had been delivered in 2007 against Victor Zammit, Christopher Gauci and Wallace Fino, who had been found to have committed fraudulent and wrongful trading in connection with PCO and the company's creditors.

The court of appeal declared that the first court had correctly established that fraudulent trading existed when the company directors intended to defraud the creditors. There was wrongful trading when the directors continued to trade when they knew or ought to have known that there was no reasonable prospect fo the company meeting its obligations prior to insolvency.

PriceClub operators Ltd formed part of the PriceClub Group of companies and it resulted that this company had no assets while it was responsible for paying off debts to other parties for the other companies within the group. The company had incurred debts with trade suppliers when it had no means to repay those debts.

See also

http://www.timesofmalta.com/articles/view/20071013/local/priceclub-directors-responsible-for-debts-court

http://www.timesofmalta.com/articles/view/20030224/local/liquidator-explains-action-to-repay-creditors