Yacht firm with links to NZ in money trouble

The Canadian arm of a company once lauded by the Government as a success story because of its job creation policies is under a $2.8 million cloud.

Act leader Rodney Hide said Sovereign Yachts employed fewer than 10 people, had built only one yacht and had credit problems in Canada.

Mr Hide told Parliament a report from American credit agency Equifax, dated September 1, showed 14 collections claims totalling $196,810 against the company, 17 legal suits totalling $1.8 million and eight judgments totalling $805,600.

It gave the company a credit rating of 41, meaning it is high risk.

Company chief Bill Lloyd told One News last night that he had sold the Canadian arm of his business, blaming an economic downturn there.

"There's no debts whatsoever, and we actually even came out of it with money," he said.


- NZPA