The New Year is anything but sensational for Sensation Yachts, which in years past has produced winning designs like Mari-Cha III and Aria, the latter pictured here. Not only was the New Zealand yard’s owner in court today, appealing a decision involving three megayachts, but he’s being forced to sell the facility by the bank holding the mortgage.
According to the National Business Review of New Zealand, Ivan Erceg, who has owned and run the yard for the past few years, signed a deal in 2004 to build five megayachts for a client. But something went awry with the agreement, and the two sides ended up in arbitration, with Erceg eventually agreeing in 2007 to buy three of the yachts for $21.5 million. As of last fall, however, there was still no settlement, with a point of contention being whether the client provided appropriate proof of clear title to the megayachts. This, according to the paper, was a condition of Erceg’s acquisition of them. But a court ruled in September that Erceg still needed to buy the boats; he appealed, and today’s court date was intended to settle matters once and for all.
It’s the latest development in a string of negative publicity for Sensation. Last year, a reported failure to pay its bills had creditors up in arms. And earlier this week, the Sunday Star Times reported that Erceg is being forced to sell both Sensation and the Henderson headquarters, nearly Auckland, it operates from. Erceg mortgaged the property to Hongkong Bank after he acquired it, according to the paper. The paper also reports that the bank holds security for up to NZ$10.78 million (nearly US$5.65 million), though neither the bank nor Barclays, which is handling the sale, has revealed how much is ultimately owed.
UPDATE, FEBRUARY 1: The appeals court judge has reserved judgment, so the case will continue. In the meantime, according to the National Business Review, offers to purchase Sensation Yachts’ facility will be accepted through February 11.
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