UPDATED 2.15PM: A High Court judge has cleared the way for HSBC to finally sell a property formerly owned by bankrupt superyacht builder Ivan Erceg, one year after the bank took over. Justice Raynor Asher has made orders in the High Court allowing HS
UPDATED 2.15PM: A High Court judge has cleared the way for HSBC to finally sell a property formerly owned by bankrupt superyacht builder Ivan Erceg, one year after the bank took over.
Justice Raynor Asher has made orders in the High Court allowing HSBC to remove from the former Sensation Yachts West Auckland site all chattels not belonging to Russian-owned company Balenia.
He noted HSBC had been given mortgagee possession of the site in October last year and neither Mr Erceg nor any interests associated with him had taken any steps to remove the chattels from the site.
In May 2007 HSBC advanced a loan worth $6.5 million to Mr Erceg, a loan the judge noted was now significantly in default.
Earlier today it was revealed a confidential settlement had been reached in a long-running multi-million dollar dispute over the disposal of unfinished superyacht hulls from the failed Sensation Yachts empire.
The High Court at Auckland this morning was told that settlement had been reached between Hong Kong and Shanghai Banking Corporation (HSBC) and the Russian owners of Balenia over the removal and disposal of the disputed hulls.
The Judge's orders together with its settlement with Balenia will enable HSBC to have the site fully cleared so that it can be sold.
Balenia, which succeeded in having Mr Erceg made bankrupt in February this year, had paid $100 million for five superyachts but they were never finished.
Three partly completed hulls have been sitting in the former Sensation Yachts boatyard in Henderson, Auckland, which is in the mortgagee possession of HSBC.
Before it could sell the site HSBC needed to get rid of the unfinished hulls but Balenia had initially refused, saying it didn’t have anywhere to move them to.
Today Justice Raynor Asher heard concerns from Balenia lawyer Graham Kohler that Mr Erceg or his interests might try to get their hands on at least one of the hulls and other chattels on the West Auckland boat-building site.
Mr Kohler said there was considerable public concern over the liquidation of Mr Erceg’s Sensation Yachts company and Mr Erceg’s bankruptcy.
He said that both the liquidation and the bankruptcy involved many tens of millions of dollars.
He was concerned to secure Balenia’s interests in safeguarding the chattels including unfinished hulls and not run the risk of them disappearing from the site.
It is understood Balenia was concerned about past performance by Mr Erceg, which is said to have involved the alleged cutting up of disputed yacht hulls with a chainsaw.
While the details of the settlement have been kept confidential both HSBC and Balenia told the court that the settlement should be finalised by April next year.
More coverage of Ivan Erceg-
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