Sefton Resources Inc Update on Litigation (3799X)
August 28 2015 - 2:02AM
UK Regulatory
TIDMSER
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 Tel: 020 7872
Officer 5570
Laurence Read, Adviser
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Nick Harriss, Nick Athanas, Allenby Tel: 020 3328
Capital (Nomad) 5656
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Nick Bealer, Cornhill Capital Tel: 020 7710
(Broker) 9612
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Tim Blythe, Camilla Horsfall, Tel: 020 7138
Blytheweigh (PR) 3224
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This information is provided by RNS
The company news service from the London Stock Exchange
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