PGC loses loan secrecy bid
PGC has lost a fight to keep details of a loan it made to a related company, which is the subject of a Financial Markets Authority investigation, secret
A Court of Appeal hearing held in Wellington yesterday resulted in the lifting of a suppression order banning details of a judgment made by the High Court last month.
The judgment reveals details of a $25 million loan made by a cash fund of Perpetual Cash Management Fund to Torchlight.
The FMA said last month that it was investigating PGC on the issue of related party loans, while its auditors, KPMG, quit in May because of ''unresolved differences as to whether certain transactions should be disclosed as related party transactions, and concerns over the adequacy of governance and management of financial reporting''.
FMA said this afternoon in a statement that it ''can now confirm its continued engagement with Perpetual Trust Limited (Perpetual) to recover $25 million in related party loans made by Perpetual as trustee of the Perpetual Cash Management Fund (Fund).''
Perpetual is a subsidiary of Pyne Gould Corporation (PGC).