Since Gadens issued its class action proceeding on 28 June 2017 in NSW, a lot has happened.
SurfStitch had entered into a trading halt on 24 May 2017 when it learned of a shareholder class action having been issued against it by Quinn, Emanuel, Urquart & Sullivan in Queensland. That competing class action was stayed because of the voluntary administration of SurfStitch on 24 August.
Meanwhile, Gadens’ class action continues because it has also sued former director Justin Cameron. Earlier orders made by the Supreme Court of Queensland constraining Gadens’ notification obligations, were vacated last week, freeing up Gadens to approach and sign up shareholders and former shareholders without restriction.
An upcoming hearing in the Gadens proceeding will determine whether and the terms upon which a ‘Common Fund Order’ and opt out notices will be used in the case. This could position the Gadens proceeding to represent the vast majority of SurfStitch shareholder claimants.
Administrators for SurfStitch are negotiating a Deed of Company Arrangement with suitors interested in reviving SurfStitch and perhaps re-listing the company. http://www.busseltonmail.com.au/story/4904496/surfstitch-administrators-weigh-up-relisting/ ;
The next creditors meeting is due in December or January. Administrators have indicated they wish to sell non-core business parts (such as STAB magazine – see https://www.businessinsider.com.au/the-administrators-of-surfstitch-have-just-ditched-stab-magazine-2017-9 ) and bundle up the remainder of the business for sale as an ongoing group.
Throughout, SurfStitch has continued to trade fairly much as normal.
Interested potential claimants can register their interest on our website at:
or to email us at: