Erceg boatyard chattels must go

A number of hulls built for a Russian client are still at the Henderson property. Their future is unclear. Photo / Herald on Sunday

Banking giant HSBC was yesterday given the green light to sell troubled businessman Ivan Erceg's $6.5 million boatyard when a High Court judge ordered chattels to be removed from the site.

HSBC has been embroiled in a year-long dispute with Ivan Erceg (bankrupted last year), Erceg's former company Sensation Yachts (in liquidation), and creditors such as Russian company Balenia who all have chattels on the Henderson property the bank wants to sell.

HSBC's lawyer James Burt said yesterday the bank had also reached a settlement with Balenia regarding its unfinished boat hulls on the 5ha property.

A hearing on the settlement between HSBC and Balenia will be held in May 2011.

Balenia paid Erceg $100 million to build boats for several Russian clients. The luxury yachts were expected to be completed in 2007 but were never finished.

The 100-tonne hulls have been a headache for HSBC since it took over ownership of the boat yard last year when Sensation Yachts was placed into receivership.

Balenia said in the past it would be too difficult to move the hulls off the property and there was nowhere to put them.

The details of the settlement between the two companies were not disclosed but Balenia's hulls will lawfully remain on the property for the time being.

Justice Raynor Asher ordered the removal of all other chattels including computers, files and tools.

Asher said HSBC was giving the creditors "one last chance to remove the chattels" before they were forcibly removed.

From yesterday creditors have 20 working days to remove chattels.

If Sensation Yachts wants to remove its chattels it has been ordered to give HSBC and Balenia 10 working days' notice (within the 20 working day timeframe) so that sensitive information such as Balenia's financial accounts and plans for the boats can be removed from computers.

Burt said yesterday that once that timeframe has lapsed, HSBC "can do what they want with the chattels".

He said the remaining chattels were trespassing and would be considered abandoned after the 20 working day period.

The sale of the property will be the final nail in the coffin for Sensation Yachts which once built superyachts for the super-rich in Europe.

Erceg was not present in court yesterday. He is believed to be in Europe, having moved to the south of France last year.

Since he has been abroad he has been bankrupted and Sensation Yachts has been liquidated.

Erceg is the brother of Michael Erceg, a hugely successful businessman who died in a helicopter crash in 2005.

Michael Erceg's company, Independent Liquor, was worth more than $600 million then and sold for more than $1 billion.