Sensation Yachts In Financial Trouble

by Deidre Woollard (RSS feed)
Sep 6th 2008 at 11:02AM

It looks like New Zealand yacht company Sensation Yachts is in some serious financial trouble. TVNZ reports that the Auckland-based company has to pay Russian investors more than $32 million over a deal gone bad. A $90 million contract was signed three years ago with the promise of five boats. The Russian investors paid $25 million in deposits but no boats were completed.

TVNZ goes on to reveal that Sensation's Australian boatyard in Newcastle is also floundering because they cannot afford to pay rent and keep workers. Both the Australian and New Zealand boatyards are facing increased pressure from creditors. Owner Ivan Erceg has been able to stave off creditors thus far paying just enough to keep the business afloat. Having to pay off the Russian contract could spell doom for this company which has produced some beautiful yachts including the 148-foot Maria Cha III shown above.

Tags: new zealand, sensation yachts, yachts