Banking giant HSBC will soon be able to sell Ivan Erceg's $6 million Henderson boat yard after the High Court approved orders to remove numerous chattels from the property today.
The dispute between Erceg, bankrupted, Sensation Yachts, in liquidation, and other creditors such as Russian company Balenia to remove chattels has been ongoing for a year.
HSBC wants the chattels removed so that it can sell the boat yard and recoup its $6 million loan to Erceg.
Balenia has several unfinished boat hulls at the Henderson property that were supposed to have been completed by Erceg's company Sensation Yachts.
These 100 tonne hulls are still on the property because Erceg, who was paid $100 million by Balenia, was supposed to have completed them in 2007.
HSBC took over ownership of the boat yard in October last year - when Sensation Yachts was placed into receivership - and wanted the hulls removed then.
But Balenia refused to move the hulls saying it would be too difficult and there wasn't another location to move them to.
HSBC's lawyer James Burt said Balenia and the bank had now reached a settlement out of court.
A hearing on the settlement between HSBC and Balenia will be held in May 2011.
Details of the settlement between the two companies were not made public in court today.
Burt argued that all the chattels, bar Balenia's, were trespassing on the property.
Justice Raynor Asher delivered an oral judgment today stating all chattels, bar Balenia's hulls and some of the company's intellectual property such as plans and financial accounts, were to be removed.
Any chattels that are not been removed will be considered abandoned and not wanted.
Erceg himself is still believed to be in Europe. He was not present in court today.By Kelly Gregor Email Kelly