In its glory days, the yacht Sequoia was a spit-polished, floating mini-palace, on which presidents from Herbert Hoover to Jimmy Carter entertained dignitaries and diplomats. Now, the National Historic Landmark lies rotting under a layer of shrink wrap in a Virginia shipyard as attorneys argue over who should pay to repair it, how much it will cost, and who will ultimately own the vessel.

A Delaware judge Wednesday is trying to determine a price at which a lender can exercise an option to purchase the Sequoia or cede possession to current owners.

Lender FE Partners contends the $7.8 million default value is too high because it will cost about $4 million to repair the wooden-hulled boat.

The current ownership group says it will cost only about $300,000 to address problems.