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Bankruptcy auction for Privilege Yachts

As ordered by an Italian court, the main facility of defunct Italian shipyard Privilege Yachts is up for auction following two previously unsuccessful auctions in recent years. 

The Court of Civitavecchia is soliciting an opening bid of €9.4 million euros (approx. $11.6 million U.S. dollars) for the facility, which includes the surface property rights to 11 buildings over a total area of 102,000 square metres, and 24,500 square metres of solar panels. The buildings include several warehouses, a metal fabrication site, a joinery shop and offices.

The facility is situated on public property, however a concession through 2039 permits the land for shipyard use. 

The sealed-bid auction is due to end on April 19, with the court intending to formally sign hand-over documents the following day.

The partially constructed 127-metre (417-foot) superyacht Project P430 remains at the yard, however the auction mentions that there are conditions related to the ownership of the yacht that will continue for up to 12 months after the deadline for bids.

Privilege Yachts was founded in 2006 and a contract was signed to build Project P430, also known as Privilege One, in 2008 thanks to funding from a consortium of five Italian banks.

Construction was put on hold in 2012 when one of the backers pulled out, but in 2014 yard CEO Mario La Via claimed he had secured further finance and planned to launch the vessel by the end of that year.

Privilege Yachts filed for bankruptcy in 2015 with reported debts exceeding €200 million, and an auction in July of that year failed to attract a buyer.

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