Troubled boat-builder runs out of time

Ivan Erceg. Photo / Doug Sherring

Embattled boat-builder Ivan Erceg has exceeded the allowed time to file for a hearing to oppose his bankruptcy, the Court of Appeal confirmed this week.

Erceg was bankrupted at the High Court at Auckland on February 2 by Russian-owned company Balenia, which paid him $100 million to build five super yachts that were never completed.

Eight days later he appealed against the decision.

The six-month period in which Erceg needed to file an application to be heard on his appeal ended on August 10.

Neither the Court of Appeal nor the Official Assignee has received any information from Erceg or his lawyers on how the appeal is to proceed.

The Appeal Court said Erceg could now apply for a three-month grace period, which if granted would allow him until November 10 to file for a hearing.

But this looks unlikely to happen, as Erceg is still in Europe and has not been in contact with New Zealand authorities.

Erceg owes Balenia more than $3 million. He also owes Dorchester Finance $5 million, Public Trust $1.4 million, Lynne Erceg $690,000, Allied Nationwide Finance $133,000, law firm Bell Gully $43,000 and Mercedes Benz Financial Services $25,000.

Erceg also owes HSBC - the mortgagee for his Henderson boat property - $6.5 million. The bank is trying to get chattels removed from the property so it can sell the land and recoup its investment.

HSBC's first application was denied and now the matter will go to trial. Balenia is fighting the bank on this matter, as it has three incomplete boat hulls on the property and nowhere to move them to.

Court documents also show Erceg owes his mother, Millie Erceg, money but how much is not disclosed.

Balenia's lawyer, Graham Kohler, said Erceg had applied to halt the winding up of his estate until his appeal was heard but this had been denied.

Kohler confirmed Erceg had taken no further steps to appeal and said the Official Assignee should be "charging ahead" to get his creditors their money.