A meeting for Sea Malta creditors was told today that "it is not envisaged that there will besufficient funds to make good for all creditors".

The liquidators said it was up to the courts to decide on the list of privileged creditors - which include Bank of Valletta, the VAT Department, the Malta Maritime Authority, Malta Shipyards and sea-based employees.

The liquidators said the MV Maltese Falcon was sold on June 1, 2006 for €4 million and the MV Zebbug was sold in October 2006 for €1.42m. The funds are being held by the court.

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.

Their claims for privilege was rejected and it is is now up to the courts to draw up the ranking of creditors.

The Commissioner of VAT is claiming €684,000 in VAT due and interest accrued, the MMA is claiming just under €1.8m, Malta Shipyards is saying it is owed €876,000.

Most of this morning’s meeting was dominated by seafarers who asked questions on the payment of their redundancy money.

It was explained by the liquidators that notice money was privileged according to employment law but Mimcol (the government holding company) was awaiting legal advice from the Attorney General on other aspects of the seafarers’ claims. Money due to shore-based employees was paid out by the government.

At the end of June, surplus funds held by the liquidators amounted to €8.1 million.