News | Wednesday, 29 July 2009

“There isn’t enough money”: Sea Malta liquidators tell creditors

Sea Malta creditors were yesterday informed that there are no sufficient funds to make good for all pending debts.
The former parastatal company liquidators insisted that it was now up to the law courts to decide on the prioritisation of creditors, which include Bank of Valletta, the Malta Maritime Authority (MMA), the VAT Department and the former sea-based employees.
During the meeting, the liquidators said that MV Maltese Falcon was sold for €4 million and the MV Zebbug for €1.42 million. The money acquired from their sale is currently being held by the court. At the end of June, surplus funds held by the liquidators amounted to just over €8 million.
The seafarers had filed two separate court cases claiming privileged rights for just over €2.3 million owed to them by way of notice money and redundancy payments.
However, their claims for privilege were rejected and it is now up to the courts to list the ranking of pending creditors, many of whom have issued garnishee orders against the company.
According to the liquidators, The VAT Department is owed €684,000 in dues and interest accrued, the MMA is claiming just under €1.8 million, while the Malta Shipyards is saying it is owed €876,000.
Mimcol (the government holding company) is reportedly awaiting legal advice from the Attorney General on other aspects of the seafarers’ claims.
Payments due to shore-based employees were paid out by the government.

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