17 Jul 2012

Stakes in Heartland and PGG Wrightson lowered by PGC

7:06 am on 17 July 2012

Pyne Gould Corporation has sold more of its stake in Heartland New Zealand and PGG Wrightson.

The investment concern controlled by George Kerr has sold $10 million worth of stock, leaving it with 3.9% of Heartland and 0.9% of PGG Wrightson.

Earlier this month, Pyne Gould sold $15 million worth of stock in both companies.

Pyne Gould says $22 million will be used to repay bank debt.

It says the money is not needed by its subsidiary, Torchlight Fund, to repay $13 million in related party loans that's owed to another Pyne Gould unit, Perpetual Trust. That money is due by the end of the month.

Last week, the High Court placed two observers, Vivian Fatupaito and Christopher Duffy of WHK, to atten d Perpetual's board meetings and to investigate details of loans made by to Torchlight.

Perpetual has frozen one of its funds involved after it lost a court battle with Executor Trustees and the Financial Markets Authority to keep the details of related party loans secret, leading to a run of investors trying to get their money out.