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Pyne Gould stumps up $15 mill for South Canterbury

Friday 25th June 2010

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Pyne Gould has stumped up $15 million of the $100 million facility extended to embattled financier South Canterbury Finance through George Kerr's Torchlight fund.

The credit line which replaced a $75 million facility from an investment vehicle of PGC cornerstone investor George Kerr and was unaffected by the government’s decision to place SCF owner Allan Hubbard and some of his business interests under statutory management. The balance of the fund is provided by third parties, and has a prior ranking to SCF’s debenture holders.

“Our facility, being secured ahead of other charges under the trust deed, is particularly robust, and our investment is well secured and profitable,” said John Duncan, Torchlight managing director, in a statement.

The credit line was increased after an attempt for Kerr to inject $37.5 million into SCF through the issue of convertible notes to the Timaru-based financier’s parent, Southbury, proved too difficult to get approval.

PGC company secretary Colin Hair released the statement, saying the firm believed it would be “helpful for PGC shareholders and the market generally to have access to have access to this media release through the NZX platform given that it clarifies the extent of PGC’s investment in the Torchlight group of funds.”

The shares were unchanged at 40 cents in trading today, and have fallen some 17% this year.

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