Seafarms Group (ASX:SFG) said it will be entitled to receive a substantial portion of any funds distributed by the liquidators of Project Sea Dragon, after a Supreme Court of Queensland ruling on Friday, according to a same-dau filing with the ASX.
The court ruled against the application for leave by the liquidators to have themselves appointed administrators.
It ordered that the deed fund, as described in the deed of company arrangement, held in court is to be paid to the liquidators. After the costs of the liquidation are paid, the balance of the fund will form part of the funds which will be distributed to the creditors of Project Sea Dragon as a dividend in the liquidation.
It also ordered that the repayment obligations on the deed administrators and their right to an indemnity from company assets as per the Funding Agreement and Corporations Law remain on foot.
The firm will take steps to recover that amount from the deed administrators.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.