New Zealand Yachts, a company once mooted to play a major role in making Whangarei a superyacht building mecca, has gone into receivership. The move was initiated by Caterpillar Financial New Zealand Ltd after loans to the company fell due on November 1.
Caterpillar, which has been involved with New Zealand
Yachts Ltd and related companies for several years, has appointed Paul Sills, from Auckland law firm Hornabrook Macdonald, as receiver and manager of the yacht business.
One job has been lost through the receivership, and New Zealand Yachts continues to trade, Mr Sills said.
New Zealand Yachts, which has mostly been involved in refits of superyachts, came to Whangarei in 2001 with promises of creating up to 1000 jobs within five years and turning Whangarei into a "superyacht city".
However, the company built only one yacht and job creation on the scale envisaged never eventuated. The company gradually reinvented itself as a refit yard, achieving some success before the world-wide recession began to affect the marine industry.
Founder Allen Jones, a New Zealander who built a large car-washing business in the United States, returned to the US some time ago. His son, Damon Jones, has been working as the company's marketing and sales manager, with Martin Gleeson as general manager.
Mr Sills said he intended to operate New Zealand Yachts for the foreseeable future to focus on growing the refit business.
Everyday management of the yard would continue with general manager Mr Gleeson reporting to the receiver.
The likely timeframe for recovery was unknown at this stage, but the company had good forward bookings for work. Mr Sills said an injection of money to help bail the company out was not required for daily trading activities at this time.
The 15m-high shed where the company operates is owned by a related entity over which Caterpillar Financial holds the first mortgage.
Mr Sills said he considered it a first-class refit yard capable of attracting work from all corners of the globe.
"It is hoped the local marine industry will support the ongoing operation of the refit business as the company in receivership works to establish itself as a premier destination for refit or maintenance work in the South Pacific," he said in a statement on Friday.
