More Supermarkets creditor tells court how carpet was pulled from under his feet

A creditor of More Supermarkets told a court on Tuesday how his business dealings were dealt a mortal blow when supermarkets boss Ryan Schembri had transferred the business to a new shareholder, Darren Casha.

Further details of the complex series of events leading to the collapse of the supermarket chain emerged on Tuesday when another of the businessman’s creditors took the witness stand in the compilation of evidence against Schembri who is pleading not guilty to fraud and money laundering  estimated to run into tens of millions of euros. Schembri was arrested in Scotland and extradited to Malta in April.   

Edmond Mugliett testified at length about how he was originally introduced to Schembri by Casha in March 2012, recalling how the conversation about the meat trade had steered towards Schembri's supermarkets project.

Mugliett, a former businessman, had agreed to provide short-term financing for meat stocks that were already bought and were awaiting transshipment.

Schembri had explained that he needed funds to effect that transshipment, promising to repay the loan upon delivery of the goods.

The mood during that first meeting was “comfortable,” said Mugliett, who agreed to...