17 Aug 2012

Perpetual Trust to pay court costs of statutory supervisor

2:04 pm on 17 August 2012

A court memo has suggested Perpetual Trust has agreed to pay the court costs of its statutory supervisor.

Perpetual, which is owned by Pyne Gould Corporation, had a hearing over unlawful related party lending cancelled in the High Court in Auckland on Friday morning, after a joint agreement was reached over costs between it and Trustee Executors.

The trustee wanted Perpetual to pay all its costs, though it did not want the money to come from the Perpetual Cash Management Fund, which has been under investigation by the Financial Markets Authority and Trustee Executors.

Both had queried $28 million in loans from the fund to the Torchlight Fund, which is also owned by Pyne Gould, and which has now been repaid.

Meanwhile, Perpetual has until the end of Friday to propose how it's going to internalise its Cash Fund and wind up its Mortgage Fund.