By Marta Steeman From Stuff.NZ

Pyne Gould Corporation is now run by George Kerr, a descendant of one of the founding families.

Real estate investment firm Pyne Gould Corporation said its Torchlight Fund LP would vigorously defend itself in legal action taken in the Cayman Islands.

Torchlight Fund LP was a private equity fund investing in long term assets and was designed for long term investors, PGC said.

Through one of its subsidiaries PGC held 25.33 per cent of the fund at March 31, 2014, it told the NZX this week.

About 2000 investors, many from Canterbury, are shareholders in PGC, once a large and influential Canterbury investment and finance company.

The company is now run by businessman George Kerr, a descendant of one of the founding families.

Some investors are wanting to cash up their investment in the Torchlight fund and are petitioning to have the fund wound up.

The general partner running the fund is a wholly owned subsidiary of PGC, and believes “this is an ill considered and meritless action which has no prospect of success”, PGC said on Friday.

“Given this matter is before the courts PGC does not consider it appropriate to make detailed comments in respect of this matter……” PGC said.

PGC said this week that historically the Torchlight fund had been considered an associate of PGC.

But for the current financial year ending June 30, 2016, Torchlight fund would be treated as a subsidiary of PGC.

The manager of the fund, a subsidiary of PGC, received management, investment acquisition and performance fees from the fund.

PGC told the market recently that it had cut the value of the fund by £7 million ($16 million) after the audit of the fund for the year to March 31, 2014.

IMAGE: Pyne Gould Corporation is now run by George Kerr, a descendant of one of the founding families. DON SCOTT/FAIRFAX NZ
Related iNews Cayman stories:
Published September 29 2014 “Kerr under pressure in fund revolt [domiciled in Cayman Islands]” at: http://www.ieyenews.com/wordpress/kerr-under-pressure-in-fund-revolt-domiciled-in-cayman-islands/
Published July 20 2015 “Van Eyk asset hunt: investors take legal action in Cayman Islands” at: http://www.ieyenews.com/wordpress/van-eyk-asset-hunt-investors-take-legal-action-in-cayman-islands/

IMAGE: www.nbr.co.nz