Seafarms Group Limited, the company that announced its plans to build what would be the worlds-largest shrimp farm dubbed Project Sea Dragon, has increased a credit agreement as it continues work to reacquire key assets of the project.
The new deal with Avatar Finance – a private company controlled by Seafarms Group Chair Ian Trahar – increases the credit agreement from AUD 8.5 million to AUD 16.5 million (USD 5.6 million to USD 10.9 million, EUR 4.8 million to EUR 9.3 million). The increased debt facility also extends repayments to 15 October, 2026.
Seafarms Group said the company will use AUD 4 million (USD 2.6 million, EUR 2.2 million) of the additional funds to support its Queensland-based prawn crop, with the remainder of the funding covering corporate and ongoing project costs.
The move comes as the company released its annual report, indicating the company posted a loss of AUD 11.7 million (USD 7.7 million, EUR 6.6 million) before taxes. The company said it reduced stocking of banana prawns in FY2025 due to a high amount of frozen stock in the industry, and said its total production across the group was 605 metric tons (MT) of both banana and black tiger prawns across the group – down from 1,186 MT in 2024.
Seafarms Group’s Project Sea Dragon has had a tumultuous few years, and at one point an Australian court ruled the project should be liquidated after abuse of corporate laws. A judge later granted a stay on the liquidation, but in November 2024 Seafarms lost its appeal and the company said it would engage with appointed liquidators and work through the implications of the findings.
As the company continues to work through what it called “lengthy court processes” in its FY2025 results, the company said it has applied to the court for return of funds advanced under the Deed of Company Arrangement, totaling roughly AUD 1.75 million (USD 1.16 million, EUR 990,000). The company said it had a court hearing on 21 August regarding an appeal about the funds, but doesn’t expect a judgment for several months. If the appeal is successful, Project Sea Dragon will receive the full value of the funds – and if it fails it will receive 82 percent of the proceeds.
Regardless of outcome the court cases are still hampering the project’s development, according to Seafarm Group’s FY2025 results.
“Despite meaningful continuous engagement with potential funders the ongoing questions regarding the legal status of the project and lengthy court processes continue to hinder progress,” it said.
A spokesperson for Seafarms Group said the company is negotiating to reacquire key Project Sea Dragon assets, which should allow the company to restart Stage 1A development.
