The year-long court battle over the now-defunct Sensation Yachts is finally resolved. The High Court in Auckland, New Zealand has ordered the removal of all unused equipment to prepare for selling the property.
The ruling benefits HSBC, the bank which took over the yard last year from its owner, Ivan Erceg. According to court filings, HSBC loaned Erceg more than NZ$6 million (US$4.6 million) in 2007. When he defaulted on the loan the following year, the bank began proceedings to become the mortgagee in possession. Erceg was not present for the recent court decision.
Since acquiring Sensation Yachts last October, HSBC has been trying to have the hulls, construction equipment, computers, and more taken off the grounds. That therefore would pave the way to sell the yard. HSBC initially filed a lawsuit to force Balenia, which ordered the yachts and was a Sensation Yachts creditor, to move the hulls. Balenia objected, stating that the megayacht hulls were too difficult to move, each in excess of 50 meters (165 feet). Other creditors objected to removing the hulls as well. Subsequently, a judge decided that a trial was necessary to resolve the issue.
While the judge was preparing his ruling, HSBC and Balenia apparently tried to work out a deal. In published reports, James Burt, HSBC’s lawyer, states that the two firms reached a settlement out of court. He didn’t divulge details, though. A hearing over the agreement will take place in May 2011. As for the High Court’s ruling, it requires removal of all equipment except for the hulls and items such as software and financial accounts. Additionally, removal must be complete within 20 days, with HSBC and the appropriate parties arranging the details. Items that remain are to be considered abandoned and can be disposed of by HSBC.
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