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Sefton Resources (SER)

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Friday 28 August, 2015

Sefton Resources

Update on Litigation

RNS Number : 3799X
Sefton Resources Inc
28 August 2015
 

28 August 2015

Sefton Resources, Inc.

("Sefton" or the "Company")

 

Litigation Update - Motion for Bankruptcy Dismissal Filing Acknowledged by Court & Sefton's Costs Pursued

 

Sefton Resources, Inc. (LON: SER), the oil and gas exploration and development company, provides a litigation update on the acceptance of the filed motion for bankruptcy dismissal by the Colorado Court.

 

Highlights

 

·     Motion to dismiss bankruptcy filing accepted by Colorado Court and hearing scheduled for October 2015; and

·     Sefton pursuing fees and costs from James Ellerton (Sefton's former Executive Chairman) related to the bankruptcy litigation, in addition to punitive damages to punish Mr Ellerton for bringing the litigation in bad faith.

 

As of the announcement of 24 July 2015, Mr Ellerton and his affiliated entities (the "Petitioners") filed in the US Bankruptcy Court for the District of Colorado (the "Bankruptcy Court") an Involuntary Petition under Chapter 7 of the US Bankruptcy Code (the "Petition"). Sefton has filed a motion to dismiss the Petition and is also seeking fees, costs, and punitive damages against Mr Ellerton based on Sefton's assertion that the Petition is facially invalid and was filed in bad faith.

 

As previously announced, Sefton in separate litigation is seeking damages against Mr Ellerton based on allegations of misconduct and unlawful activities during and after his time as an officer of the Company.

 

The Bankruptcy Court held a scheduling and status conference on 25 August 2015, and is giving Sefton's dismissal motion top priority on its docket, setting a hearing on the first available dates for the Court.  The hearing will proceed during October 2015 (the "Hearing").

 

The Hearing will demand that the Petitioners must present their burden of evidence, and prove that the Petition was validly and properly brought.  Sefton will present evidence of the Petitioners' lack of standing and bad faith.  The Court will then rule on whether the Petition should be dismissed, and whether fees, costs, and/or damages will be awarded against the Petitioners.  The board of Sefton believes the bankruptcy litigation to be fully without merit and will be actively pursuing all available remedies against Mr Ellerton and his affiliated entities.

 

Further announcements will be made as appropriate.

 

Visit www.seftonresources.com or contact:

 

Raylene Whitford, Chief Financial Officer

Laurence Read, Adviser

 

Tel: 020 7872 5570

 

Nick Harriss, Nick Athanas, Allenby Capital (Nomad)

 

Tel: 020 3328 5656

Nick Bealer, Cornhill Capital (Broker)

 

Tel: 020 7710 9612

Tim Blythe, Camilla Horsfall, Blytheweigh (PR)

 

Tel: 020  7138 3224

 


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