Tumas Investments plc has reassured investors that recent court developments concerning the Halland site in Swieqi will not impact its ability to redeem a €25 million bond issue.

The listed company spoke out after the Court of Appeals revoked the permit of a residential complex that has been built on the site of the former Halland Hotel.

Halland Developments Ltd, which developed the complex, forms part of Tumas Group.

“The Halland Site had been under development pursuant to valid planning permits,” Tumas Investments said. “The Guarantor is currently reviewing the implications of the judgment and assessing its position going forward.”

“The Company reinforces the position already set out in the Financial Analysis Summary that its plans in relation to the outstanding €25 million 3.75% Unsecured Bonds 2027 place no reliance on proceeds from that development.”

It also reiterated that the revenue expected from the development won’t be necessary for the redemption of its outstanding bonds, which are set to be repaid next year.

The complex was built in Swieqi after the developers obtained a permit from the Planning Authority, which was confined by the Environmental and Planning Review Tribunal.

However, the Court of Appeals threw the future of this project into serious doubt when it ruled last week that the PA and the EPRT had disregarded a planning policy when approving the permit.