Despite public solicitation for bids, an Italian bankruptcy court did not find a buyer for the former Privilege Yard. However, if one local news outlet is correct, a new auction might take place.
In early April, a Civitavecchia bankruptcy court set an opening bid of €9.4 million (approximately $11.6 million at that time) for the facilities. The court declared Privilege Yard bankrupt in 2015. Gobid.it, an auction website specializing in the nautical sector, publicized the April auction. Among the public details, the court indicated that it might consider bids starting at €7.52 million (about $9.2 million). The auction put forth surface property rights to 11 buildings, including warehouses, a metal fabrication shop, as well as a joinery shop. The bankruptcy court only offered surface rights, though, because the land upon which these all sit is public property. Civitavecchia granted a concession for Privilege Yard to operate a shipyard there through 2039.
Bidding remained open through April 19. The winning bidder would have signed formal acquisition documentation on April 20. But, according to the regional online newspaper Civonline.it, no bidders surfaced. Gobid.it confirmed to us this morning that it did not receive any bids.
While this does not bode well for Privilege Yard’s future, the editorial staff of Civonline.it theorizes that the court might try to auction Privilege Yard again. The theory is not without basis. Several previous auction attempts occurred dating to 2015, each seeing a lower minimum bid. Interestingly, some of those prior auction notices included both the shipyard and a megayacht in build there, P430. (She is pictured at top, during construction in 2014. The rendering directly above shows her final plan.) Also called Privilege One, P430 was Privilege Yard’s first contract, measuring 417 feet (127 meters). Construction started in 2008, with completion set for 2012. As of 2014, P430 still was only about 60 percent complete.
Ultimately, the court separated P430 from the shipyard auction lot. Once she became a separate available acquisition, a yacht buyer stepped in. That excluded the yacht from the most recent shipyard auction attempt. Still, according to the bankruptcy court, the winning yard bidder did gain the right to work on her construction on site for six months. If so desired, upon approval, those construction rights would extend another six months.
For now, P430 remains at the shipyard. According to an owner’s representative, he is weighing whether to use some of the immediate construction facilities for the next six months. This was a stipulation in the acquisition agreement. Alternately, the representative adds, the owner may transfer the yacht elsewhere for completion.