Sovereign Yachts in New Zealand was ordered to liquidate yesterday by the High Court in Auckland. The yacht builder came to New Zealand from Canada in 2001, and government officials at the time said the move would create 350 jobs.
Yesterday’s court order came after a number of creditors initiated applications to liquidate Sovereign. The application by ASB Bank was approved by the court.
Sovereign Yachts had attracted its share of press over the years. New Zealand media reported that Sovereign came to New Zealand with unpaid taxes in Canada. Government opposition leaders also criticised a deal, sanctioned by the Labor government in power at the time, to allow Sovereign Yacht owner Bill Lloyd to buy four hectares of Auckland waterfront property for less than NZ$500,000. At the time of sale, the land was estimated to be worth NZ$11.6m and is now estimated at $36m. The paper reported that it will not be part of the liquidation proceedings because it is owned by Hudson Bay Holdings. Lloyd is listed as the director of that company.
Sovereign Yachts’ list of creditors is lengthy, and includes Marac Finance, Rent Plus Funding and Nuplex, among others.
Another New Zealand yacht builder, Genesis Marine, also went into liquidation this year. Its liquidator is still trying to sell that company.