Cap. 13 ст. 538General provisions. Appointment of curator to give his consent in lieu of a creditor. Cap. 452. Cap. 386. Cap. 16.

In all cases of bankruptcy:

(1) (a) Upon the authorisation of the court for the bankruptcy trustee to proceed to the sale of assets comprising the bankruptcy estate in terms of article 497, or in pursuance to a debt agreement, or a bankruptcy order, and if the bankruptcy trustee has identified the need to obtain the consent of a creditor prior to the transfer of any asset or assets, and, or, where the creditor is required to appear on any pertinent public deed so as to consent to the cancellation of, or a reduction in, any cause of preference and the registration of the same, enjoyed by the creditor over the said asset or assets, the bankruptcy trustee may, if he is of the opinion that the consent of the said creditor is, or may be withheld, make an application to the court for the appointment of a curator.

(b) A curator appointed in terms of this article, may under the authority of the court, consent to the transfer of assets and, or, appear on any pertinent public deed to consent for and on behalf of the creditor, referred to in paragraph (a), who may withhold his consent 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 that portion of the proceeds of the sale of assets which, in terms of law and subject to the debt agreement or bankruptcy order, which pertains to the said creditor, that shall be applied in his favour in terms of article 538(1)(c):

Provided that the court shall only proceed to the appointment of a curator for the sale of assets comprising the bankruptcy estate in terms of article 497, where the bankruptcy trustee has, in his application, expressed the opinion that the creditor, referred to in paragraph (a), who may withhold his consent shall receive, as a result of the sale of assets, an amount at least equivalent to that which the said creditor would have been entitled to if the normal ranking of priorities were applied, or in the event of the next-best-alternative scenario, if the sale of assets were not to take place.

(c) The curator shall receive, for and on behalf of the creditor, referred to in paragraph (a), who may withhold his consent, that portion of the proceeds of the sale of assets referred to in article 538(1)(b) which, in terms of law and subject to the debt agreement or bankruptcy order, pertains to the said creditor, and shall ensure that such funds are either distributed to the said creditor or, if this is not reasonably practicable, deposited in court for the benefit of the said creditor:

Provided that the proceeds of a sale of assets in terms of article 497, shall not be distributed or deposited in terms of paragraph (c), but shall aggregate to the bankruptcy estate in terms of article 495.

(2) (a) once the judgment declaring bankruptcy is given in terms of article 488, no interest on the sums due by the bankrupt shall accrue from the date of the declaration of bankruptcy made by the trader himself, or from the date of the application by a creditor demanding a declaration of bankruptcy, as the case may be; and

(b) there shall be no possibility of discharge with respect to debts arising from:

(i) any fine (ammenda or multa) due by the debtor in terms of the Laws of Malta;

(ii) civil debts due by the debtor by way of damages in tort;

(iii) wages due by the debtor and constituting a privileged claim over the assets of the debtor in terms of article 20 of the Employment and Industrial

Relations Act;

(iv) debts due by the debtor by way of fraudulent or wrongful trading in terms of the relevant provisions of the Companies Act; and

(v) debts due by the debtor in relation to maintenance obligations in terms of the relevant provisions of the Civil Code.