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Torchlight repays $9M to Perpetual Cash Management Fund

Monday 23rd July 2012

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Torchlight Fund No. 1 LP, an entity controlled by Pyne Gould managing director George Kerr, has repaid $9 million owed to Pyne Gould's Perpetual Cash Management Fund.

Transactions between the related entities, which amounted to more than $28 million, have been scrutinised by the Financial Markets Authority. This month, the High Court ordered two independent observers keep tabs on Perpetual Trust's cash management and mortgage funds amid concerns over related party loans ahead of a substantial hearing on Aug. 3.

The payment was made on Thursday and Friday of last week from the proceeds of sales of real estate, according to a statement from PR consultant David Lewis, once an adviser to former Prime Minister Helen Clark.

"These payments have reduced the Torchlight Fund facility balance to under $3.5 million," Lewis said. "It is anticipated that this residual balance will be paid shortly."

Kerr and US hedge fund Baker Street Capital own 76 percent of Pyne Gould via Australasian Equity Partners No 1 LP, after making a 37-cents-a-share takeover bid that closed in March.

Pyne Gould shares last traded at 27 cents, valuing the company at $58 million, and have dropped 21 percent this year.

BusinessDesk.co.nz

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