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Sefton Resources (SER)

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Friday 10 July, 2015

Sefton Resources

Update on Litigation

RNS Number : 6832S
Sefton Resources Inc
10 July 2015
 

10 July 2015

Sefton Resources, Inc.

("Sefton" or the "Company")

 

Update on litigation

 

The Company has previously announced that James Ellerton (Sefton's former Executive Chairman) initiated legal proceedings in the State of Colorado against the Company in May 2015 (the "Ellerton Action").

 

Further to the announcement of 25 June 2015, the Company was informed yesterday that Mr. Ellerton filed an Involuntary Petition under Chapter 7 of the US Bankruptcy Code (the "Petition") in the US Bankruptcy Court for the District of Colorado in an attempt to force the Company into bankruptcy proceedings.

 

The Company believes that Mr. Ellerton has filed the Petition in bad faith, and that the Petition is invalid under the US Bankruptcy Code (the "Code"), a view supported by the Company's US legal counsel. The Company will move to dismiss the Petition, and will seek all available remedies under the Code, including attorneys' fees, costs, and compensatory or punitive damages.   

 

Under the Code, nothing about the current Petition impedes the Company's ability to conduct business as usual, including the Company's ability to continue to pursue the current Development Agreement and provisional Kansas transaction.  In any event, the Company has recently raised funding and remains solvent.

 

Further, it is the Company's understanding that the filing of the Petition will not hinder the Company from pursuing all available counterclaims and remedies in the original Ellerton Action, which the Company fully intends to pursue. 

 

 

 

 

 

Visit www.seftonresources.com or contact:

 

 

Raylene Whitford, Chief Financial Officer

Tel: 020 7872 5570

 

Nick Harriss, Nick Athanas, Allenby Capital (Nomad)

 

Tel: 020 3328 5656

Nick Bealer, Cornhill Capital (Broker)

 

Tel:  020 7710 9612

Ben Romney, Buchanan (PR)

 

Tel: 020 7466 5132

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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