Bank wants Russian yacht hulls moved from boatyard

Bankrupt boat builder Ivan Erceg is not expected at HSBC's case against him and a Russian creditor. Photo / Doug Sherring

HSBC's case against troubled boat builder Ivan Erceg is on track for the first week of November.

A closed hearing in Justice Geoffrey Venning's chambers at the High Court at Auckland was held yesterday to ensure "everything was on track for the trial", HSBC lawyer James Burt said.

Erceg, who is not expected to be present during the case or be cross-examined by the prosecution or defence, has been living in Europe for the past 18 months.

Since he has been away, his company Sensation Yachts has been placed into liquidation and he has been bankrupted.

HSBC has filed proceedings against Erceg and Balenia - a creditor of Erceg's - to force the Russian-owned company to move several 100-tonne unfinished hulls from Erceg's former boatyard in Henderson, Auckland.

HSBC owns the boatyard now Erceg has been bankrupted and wants to sell the property so that it can recoup its $6.5 million investment.

But before the bank can sell the property it needs the chattels - such as the unfinished boat hulls - removed.

Balenia refuses to move them, saying there is nowhere to move them to.

Balenia paid Erceg $100 million to build five super yachts to be completed by 2007.

Construction began on three but the boats were never completed and the unfinished hulls are sitting in the water in West Auckland.

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.

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