Project Sea Dragon will appeal liquidation

A major NT project is fighting back after being placed in liquidation last month. Read why they’re appealing.

Floundering aquaculture development Project Sea Dragon will appeal the Federal Court decision to place the company in liquidation.

Project developers SeaFarms lodged the appeal on Thursday, March 14, against the February 23 Federal Court judgment that found in favour of Canstruct Pty Ltd.

The Federal Court placed the project into liquidation pending appeal, ruling its administration should be wound-up.

The $2bn prawn farm proposal that spawned the famous ‘road to nowhere’ as part of tens-of-millions in indirect government spending on roads, went into voluntary administration in February 2023 after an order to pay contractor Canstruct $13.9 million of unpaid fees.

February’s court judgment ordered SeaFarms to terminate a deed of company arrangement that would have seen limited payments to construct to about 10 per cent of what it was owed.

Project Sea Dragon.

The Federal Court ordered the project to be wound up with Korda Mentha acting as liquidator.

The court initiated a stay of execution of the liquidation until the expiry of the appeal period on March 21.

SeaFarms have vigorously defended themselves against February’s judgment.

A statement released by chief executive Rod Dyer at the time of the decision flagged an appeal.

“The judgment delivered by the Federal Court … was surprising,” he said.

“On review of the judgment, our view is that it contains significant errors in both fact and law. Those significant errors provide a sound basis for an appeal that ultimately, we believe, will be successful.”

Taxpayers indirectly contributed to the project through more than $100m in supporting infrastructure, primarily roads.

The Gunn Point Road duplication – known as the road to nowhere – was intended to take workers to the site of a proposed hatchery, that never went ahead.

The NT government contributed $56m in roads infrastructure, the Commonwealth contributed $63.45m, mainly also to roads, and the WA Government gave about $15m.