Sea Malta creditors yesterday gathered for a second annual meeting since the company's voluntary liquidation almost three years ago only to hear what they already knew: that there are not enough funds to make good for all of them.

"We came here with a headache and we are leaving with a headache. We got nothing out of this meeting," one creditor said at the end of the meeting when Sea Malta liquidators distributed a report to creditors in accordance with the law.

The report gave an overview of the Sea Malta liquidation process and the amount of money demanded by various creditors and companies and also listed past and pending court proceedings in connection with the liquidation.

As creditors - especially former Sea Malta seafarers - expressed frustration during a rather heated meeting, the liquidators explained they were not in a position to give clearer indications of payment due before the courts pronounce themselves on the ranking priorities of creditors.

Liquidators Andrew Chetcuti Ganado and John Abela repeatedly explained to the creditors present the reasons why their hands were tied at this stage.

As outlined in the report, since the court auction sale of Sea Malta's major assets - the mv Maltese Falcon (sold for Lm1.75 million; just over €4 million) and the mv Żebbuġ (sold for Lm610,000/€1.4 million) - various creditors were contesting their right to a priority of payment in two separate proceedings (one for each vessel).

Sea Malta was liquidated on December 12, 2005, after a prospective buyer - the Grimaldi Group - pulled out when the General Workers' Union failed to meet a deadline to negotiate a deal on seafarers.

The main participants in the pending proceedings are Bank of Valletta, the Malta Maritime Authority, Malta Shipyards, the VAT Commissioner, a number of seafarers and the liquidators who are claiming expenses.

The liquidators insisted that, before the courts apportioned priority of the creditors, they were not in a position to tell other creditors how much they would be entitled to.

What was clear was that "it is not envisaged that there will be sufficient funds to make good for all creditors but the liquidators are confident that their responsible actions continue to maximise the value of assets and protect creditors' interests," according to the report.

At yesterday's meeting, a number of seafarers expressed frustration at the manner things were being handled. They insisted on their right to be paid the privileged amount of notice money (money owed by law to employees after notice of termination of employment is served) owed to them but the liquidators explained that such payment was not made because they had objected to this after being sent letters. The seafares denied objecting to the payment and the liquidators said they could back up their claims with documentation.

A heated argument followed and, when the situation calmed down, the liquidators committed to sending each seafarer an individual letter informing them about the right to the notice money and listing the amount owed by law and that was, therefore, guaranteed to be paid without prejudice to pending court cases.

Meanwhile, other creditors present were irate about the fact that the seafarers took over the meeting to underscore their own issues.