PGC Torchlight Fund has 30 months to make payment

AUCKLAND: Pyne Gould Corp’s Torchlight Fund has 30 months to make a fixed redemption payment of $A25.5 million ($NZ27.8 million) after the firm announced a deal with unhappy investors who pursued the distressed asset investor through the Cayman Islands courts.

Last week Pyne Gould said it reached a confidential settlement with the other investors, keeping full ownership of the general partner managing the fund and increasing its direct interest in the Torchlight Fund to 70.4% from 44.2% without investing extra capital.

The investors sought to have Torchlight Fund wound up after losing confidence in the Pyne Gouldowned general partner over concerns about its management.

‘‘The general partner and Aurora (Funds Management), CAML (Crown Asset Management) and ACC, together with MIML (Macquarie Investment Management), are pleased to be able to say that they have resolved their differences and settled the disputes among them,’’ Pyne Gould said in last week’s statement.

The value of the deal was confidential, but Pyne Gould yesterday said Torchlight Fund will use the net proceeds of sale from New Zealand residential property sales over the next 30 months to pay for the redemption.

It reiterated Pyne Gould’s net tangible assets will increase as ‘‘the redemption payment of $A25.5 million is expected to be substantially below the book value for the petitioners’ limited partnership interests.’’

The exact number will be determined in Pyne Gould’s annual financial statements, it said.

The shares last traded at 30c, unchanged so far this year.