​Presidential Yacht Fight In Court Over $5 Million Loan

Presidential Yacht Fight
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February 6, 2013
Also: Delaware, FE Partners, Fight, Lawsuit, Presidential, Presidential Yacht Fight, Yacht

The former official presidential yacht from Herbert Hoover through Jimmy Carter is embarking on a fight to preserve its historic legacy by claiming that FE Partners plan to take control of the vessel over a $5 million loan agreement.

Presidential Yacht Fight

In fact, the owners of the yacht are asking a Delaware judge to prevent the lender from seizing it, but FE Partners said the Delaware lawsuit is “grossly inaccurate and without merit.”

The suit was filed after a New York judge dismissed a similar complaint last month on jurisdictional grounds. Both parties are Delaware limited liability companies.

The Sequoia plaintiffs claim that FE Partners lent only half the $5 million that was promised, leaving them in financial distress and subject to “trumped up” default claims that allow FE Partners to buy the yacht at a fire-sale price of $7.8 million.

According to the plaintiffs, the 104-foot Sequoia, built in 1925, is the longest-serving presidential yacht in American history. It was the official yacht for presidents from Herbert Hoover through Jimmy Carter.

The Sequoia was designated a National Historic Landmark in 1987 and is currently docked at a marina about a mile south of the U.S. Capitol. The yacht is available for rental, at about $10,000 per charter.