Passengers left tens of thousands of dollars out of pocket after a luxury Kimberley cruise company collapse say they hope to be refunded with the forced sale of its superyacht. 

Island Escape Cruises (IEC) New Zealand cancelled voyages between May and July off the Kimberley coast before going into receivership.

Murrie Taylor was one of many "gobsmacked" customers who paid tens of thousands for the 12-day cruises.

Mr Taylor hoped the sale would pay back the money he was owed. 

"Optimistically, we're looking up to 77 cents in the dollar as a return," he said. 

Mr Taylor registered as a creditor of the company in the hope he could recover the $30,000 he was owed.

"They're estimating the value anywhere between $20–$40 million," he said.

"At the moment, there's nearly $5 million in debts to creditors."

The Australian arm of the company announced voluntary administration last month and creditors voted after recommendations to wind up the company.

Financial hardship

The director of BCR Advisory, Dane Skinner, took on administration responsibilities of the Australian entity following the collapse of its international counterpart.

The report to creditors, seen by the ABC, looks into the financial status of the company.

The report revealed the company's financial hardship was due to its "inability to manage its cash resources".

"This led to the company's incapacity to meet its core business expenses and booking refunds," Mr Skinner said.

Mr Skinner recommended the company be wound up for the benefit of creditors.

"A liquidator is granted a wider range of powers to investigate the company, transactions, and officers for the purpose of recovering assets," he said.

Trouble between directors

According to the report, chief executive Erik Helseth approached John Annat in July 2020 to become a registered director of the company.

The intent was for the company to remain dormant until IEC Group was ready to expand operations into Australia.

Mr Annat informed BCR Advisory that, until recently, he was led to believe he did not play an active role and that Mr Helseth and another director would handle daily operations. 

In August, Mr Annat lodged an officer resignation form with ASIC, but was rejected on the basis that at least one director was required.

Forced sale

The 53.5-metre luxury vessel was impounded at Broome Port in August with a federal court order.

A debt of $18 million plus accrued interest is owed to two international banks for the purchase of the boat.

It has been revealed that the superyacht will be on the market in hopes to recover funds. 

"On 17 October 2022, the Federal Court ordered the Marshal to commence the sale process," Mr Skinner said.

Mr Skinner said the debts incurred to the Marshal and to the banks will be paid off before payments to creditors can be considered.

"Any potential distribution to unpaid creditors will depend on the net proceeds achieved in the sale process after paying Marshal's costs … and the value of claims from financiers of the ship," he said.

Mr Skinner's investigations revealed the company had a history of cancelling pre-booked trips.

"As at June 30, 2021, there was approximately $2.3 million of outstanding pre-booked trips," he said.

"Both the Australian director and Mr Helseth will be subject to my review and investigations."

Murrie Taylor said there were valid reasons for these earlier cancellations, which set back operations.

"If there is any sympathy for Island Escape Cruises, they were a victim of COVID," he said.

"There was a delay in the build."

The cruises were due to sail between the Kimberley and Darwin area.

BCR Advisory will meet with the receiver of Island Escape Cruises NZ, Calibre Partners, to conduct a thorough assessment of its finances.