Dorchester Pacific has confirmed that its subsidiary Dorchester Finance will take an additional provision of approximately $1 million over a loan to boat builder Ivan Erceg.

The provision reflects a likely shortfall between its security held and the loan due from Mr Erceg who was recently adjudicated bankrupt, Dorchester said today.



Cayman Island-based yacht company Balenia finally succeeded on Tuesday during a hearing at the High Court at Auckland. Mr Erceg, who is still living in Europe, was announced bankrupt by Associate Judge Jeremy Doogue at 3.20pm on February 2.