The Crafar family has been ordered to pay $50,000 as security for costs in four weeks if they want to continue with an injunction to block the sale of their farms by receiver Korda Mentha.
The family had sought a High Court injunction in Auckland today to delay the sale of 13 dairy farms and three dry-stock farms, which are all in the hands of receivers.
Submissions were heard today, before the Crafar family withdrew its application.
The injunction application was dismissed by Justice Rhys Harrison because there was not enough evidence of available funding, but the family was given four weeks to file an amended statement of claim.
Justice Harrison also ordered that the Crafars pay the legal costs of the banks and of the receivers in relation to the application and today's appearance.
Dan Parker, representing the Crafar family, has indicated that his clients intend to pursue a claim for damages against the banks and receivers.
Justice Harrison ordered that the legal and factual basis of that claim was doubtful and ordered that the Crafars pay security costs of $50,000 by August 6 if they wished to pursue that claim.
These costs would be divided, with $25,000 for the banks and $25,000 for the receivers.
Receiver Korda Mentha said if that claim was pursued, it would be defended "vigorously".
Korda Mentha is continuing with the process of assessing the offers received and the current agreement in place.
The farms are at the centre of an international tussle with Chinese investors and the New Zealand Government-owned Landcorp putting in bids.
The farms were put in receivership last year owing more than $200 million.
