Seafarms Group legal update

Seafarms Group (ASX:SFG) announced a significant legal development concerning their subsidiary, Project Sea Dragon Pty Ltd. The Full Court of the Federal Court dismissed an appeal regarding the subsidiary's liquidation. While the court upheld the decision for liquidation, it clarified Project Sea Dragon was not insolvent prior to February 2023. Seafarms Group remains solvent and is collaborating with liquidators to evaluate the court's decision.

Future outlook for Seafarms Group

The recent court ruling has brought clarity to Seafarms Group's legal situation with their subsidiary, Project Sea Dragon Pty Ltd. Despite the decision to liquidate the subsidiary, the court's clarification that it was not insolvent before the appointment of administrators is a key factor. Seafarms Group is working closely with the appointed liquidators to comprehend and address the implications of this decision. The company, known for its premium Crystal Bay Prawns and sustainable aquaculture initiatives, remains solvent and committed to its future projects. Further announcements will be made as they continue their engagement with the liquidators.

Executive insights on court ruling

The Full Court of the Federal Court found that the initial ruling by Derrington J, which declared Project Sea Dragon Pty Ltd insolvent since 2020, was incorrect. The court awarded costs to Canstruct, though these costs have not yet been assessed.