A judge yesterday threw out an attempt by a company that used to operate the More Supermarkets chain to wriggle out of a €272,000 loan taken out by runaway director and businessman Ryan Schembri.

Mr Justice Wenzu Mintoff heard how Mr Schembri, as director of Cassar and Schembri (Marketing) Ltd, had signed a loan agreement with Lawrence Fino, for a three-month loan. The repayment was covered by bills of exchange.

But in an application in court, Etienne Cassar of Cassar and Schembri (Marketing) Ltd, requested the suspension of the execution of bills of exchange signed by Mr Schembri, a co-director, claiming that the authenticity of the signature could not be established, given his absence from the island.

Mr Schembri fled Malta last September after having allegedly racked up some €40 million in debt.

Mr Fino, who is owed €272,139 filed a reply insisting that the bills of exchange had been signed in his presence. In court, Mr Cassar insisted he had no knowledge of any debt with Mr Fino.

In his judgment, Mr Justice Mintoff ruled that while a director of a company could have been conducting business deals behind the back of the other directors, this could in no legal manner absolve the company he was representing from any agreement made in good faith.

He therefore rejected the request for the suspension.

Last month, the court upheld a request filed by two men claiming they loaned Mr Schembri €3.5 million and were granted garnishee orders securing the money they are owed. It also upheld the company’s request and was granted garnishee orders covering the same amount against Alexander Farrugia and Edmond Mugliett who say Mr Schembri borrowed €1.5 million and €2 million from them, respectively.