Sefton Resources Inc Update on Litigation (6832S)
July 10 2015 - 1:00AM
UK Regulatory
TIDMSER
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 Tel: 020 7872
Officer 5570
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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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Ben Romney, Buchanan (PR) Tel: 020 7466
5132
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This information is provided by RNS
The company news service from the London Stock Exchange
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