Debts sinking Swiss bid

Weaker America's Cup challenger syndicates are feeling the pinch, and up to six may withdraw before racing begins in October. SUZANNE McFADDEN reports.

The Swiss challenge for the America's Cup all but sank yesterday when a writ for unpaid debts was slapped on its yacht's mast - and another syndicate claimed it owned the yacht anyway.

The bright yellow America's Cup boat sailed by the Fast2000 syndicate could go under the auctioneer's hammer on the Auckland waterfront to pay off a debt of more than $100,000 to the America's Cup Village company.

The Swiss base has been empty since March, when the team returned home - apparently as planned - after spending the summer training.

By then its money was running out, and subsequently the syndicate stopped building its new boat in Geneva.

It will not be alone if it pulls out. Some of the weaker challengers among the 16 who paid the $US250,000 bond are fading fast, and it is looking more like a 10-boat race when the challenger series starts on October 18.

Village spokeswoman Sue Foley would not say exactly how much the Swiss owe for leasing the site - "but it is a six-figure sum."

"We've received only one payment from them," said Sue Foley. "We've been doing all we can to help them, going out of our way in fact.

"We'll probably give the Swiss another fortnight to pay. We can auction off the boat if we have to."

But last night the rival French syndicate Le Defi Sud said it owned the boat and had leased it to the Swiss as a training yacht in a charter agreement that ended in February.

Le Defi Sud plans to be in Auckland to race the boat in the Louis Vuitton challenger series in October.

The main sponsor of the French syndicate, the Mediterranean Shipping Company, has already taken a container of gear and a tender boat from the base.

The Swiss let the yachting world know of their financial strife over a week ago.

Hans Bernhard, the marketing manager for the syndicate, said that Fast2000 was suffering a "severe liquidity crisis."

"Some potential partners decided to withdraw financial support already announced to the board," he said.

"They were arguing that the few million dollars missing to close the entire budget had not yet been secured by Fast."

The cup village will not be left high and dry if the Swiss fail to pay up and turn up.

Australian Syd Fischer's Holy Grail syndicate is interested in the space, and the Russians, who have already built a boat for the cup, were given a tour of the site at the weekend.

The Nippon and AmericaOne syndicates are also interested in extending their bases.