Floundering yacht-builder avoids bankruptcy

Beleaguered yacht-builder Ivan Erceg has avoided a bankruptcy order today through last-minute negotiations with one of his creditors.

The Hong Kong Shanghai Banking Corporation (HSBC) had scheduled bankruptcy proceedings, supported by Dorchester Finance, against Erceg - brother of the late alcopops baron Michael - in the Auckland High Court today.

But HSBC lawyer Michael Arthur told the court intense negotiations took place with Erceg's lawyers over the weekend.

Erceg had now agreed to make two payments to settle his debt with HSBC, firstly on Christmas Eve and again by the end of March 2010.

If HSBC received the first December payment, it would withdraw bankruptcy proceedings, said Arthur.

HSBC didn't say exactly how much Erceg owes the bank, but it's understood he owes at least $182,000 to HSBC.

Justice Graham Lang adjourned proceedings to January 14 next year.

The bank won mortgagee possession of Erceg's Sensation Yachts boat yard in West Auckland in October.

Erceg has been pursued by creditors since 2004 to pay debts ranging from $600 to $157,000.

Sensation Yachts went into receivership in August and the liquidators estimate it owes $40 million.