Torchlight Fund repays debt

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George Kerr's Torchlight Fund has repaid its debt in full to the Perpetual Cash Management Fund.

Pyne Gould Corporation, controlled by Kerr, announced the repayment this afternoon.

It said the final payment of approximately $3.5 million had been paid to the cash fund.

Pyne Gould is embroiled in a court action with the Financial Markets Authority over this controversial lending of a total of $28m from the cash fund to Torchlight fund.

The lending resulted in the resignation of Pyne Gould's auditors, KPMG, in April and an investigation by the FMA over allegations of undisclosed related party lending which Pyne Gould is disputing.

Pyne Gould also said today the Torchlight Fund has paid $6m of accrued management fees to Torchlight (GP) 1, the manager of the Torchlight fund.

The market is still waiting for a statement from Pyne Gould managing director, George Kerr, on its future strategy. The company said last week that statement would be forthcoming at the end of last week.

Pyne Gould is now essentially two groups - the Torchlight fund and management division, and the traditional business of Perpetual which offers financial planning, wealth management, wills and estate services and corporate trustee services.

The company has indicated it might shrink to the Torchlight business which may be listed in Australia. The Perpetual business may be sold to its New Zealand senior management.

- © Fairfax NZ News