MALTA Law and Practice Contributed by: Joseph Ghio, Fenech & Fenech Advocates
er, with regard to exporting the aircraft, the Act defines the word “export” as the exportation and physical transfer of an aircraft from the territory of Malta. 2.8.12 Aircraft Export Permits/Licences No aircraft export permits/licences are needed to export an aircraft from Malta. However, transport - ing an aircraft out of Malta will be subject to certain authorisations to fly. 2.8.13 Costs, Fees and Taxes Concerning Export of Aircraft A nominal fee will be charged where a permit to fly or export conformity statement is required to be issued by the Authority. 2.8.14 Practical Issues Related to Deregistration of Aircraft There should be no significant practical issues that an aircraft owner or mortgagee or lessor should be aware of in respect of the deregistration of aircraft in Malta. Proof of removal of registration marks must be provided to the Authority. 2.9 Insolvency Proceedings 2.9.1 Overview of Relevant Laws and Statutory Regimes Governing Restructurings, Reorganisations, Insolvencies and Liquidations The primary law and statutory regime in Malta govern - ing restructurings, reorganisations, insolvencies and liquidation as regards a lessee incorporated in Malta is the Companies Act (CA) and the regulations made thereunder. A new Pre-Insolvency Act, Chapter 631 of the Laws of Malta (PIA) was introduced in December 2022 implementing Directive (EU) 2019/1023 of the European Parliament and of the Council on preventa - tive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt. The PIA, however, specifically provides that the stay of certain enforcement action by creditors concern - ing aircraft is excluded from the pre-insolvency debtor protection afforded generally under the PIA, which may not be construed as limiting or restricting, among others:
• any action in rem against an aircraft or aircraft engine; • any proceedings that may be instituted by the holder of a registered mortgage or a privileged creditor over an aircraft or aircraft engine, or any other actions or proceedings to which an aircraft or aircraft engine may be subject in terms of the Act; and • any warrant of arrest, whether in personam or in rem, of an aircraft or aircraft engine. Certain provisions in the Act, including Articles 23 and 36 of the First Schedule, specifically regulate certain matters related to the insolvency of a debtor where - by a debtor includes a lessee under an aircraft lease agreement. 2.9.2 Overview of Relevant Types of Voluntary and Involuntary Restructurings, Reorganisations, Insolvencies and Receivership Voluntary and Involuntary Restructurings and Reorganisations Under the CA, the following procedures are contem - plated. • Compromise or arrangement between a company and its creditors this is a procedure whereby the court orders a meeting between the debtor compa - ny and its creditor(s) for the negotiation of a com - promise. If the compromise meets the approval of creditors and the debtor company, it will be binding thereon. • Out-of-court voluntary mediation this is an out- of-court compromise or arrangement between the debtor company and its creditors by unani - mous agreement and through the intervention of a mediator chosen by the parties themselves. • Company recovery procedure this gives companies in financial difficulty the opportunity to recover by means of a moratorium on court actions against it. However, a Maltese company whose main object or function is to own, hold, operate, charter, man - age or lease any aircraft or aircraft engine (includ - ing, automatically, a company which is or was in possession of an Air Operator’s Licence) cannot seek protection of the company recovery proce - dure, thus giving preference to airline creditors.
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