2 Sep 2010

Torchlight Fund's SCF loan repaid

12:47 pm on 2 September 2010

Pyne Gould Corporation has confirmed that a $100 million loan provided to South Canterbury Finance by George Kerr's Torchlight Fund has been repaid.

South Canterbury was placed in receivership on Tuesday. The $1.6 billion it owed to 35,000 investors has been covered by the Government's Retail Deposit Guarantee Scheme.

The Government is also lending $175 million to South Canterbury Finance's receivers, McGrathNicol, to repay other creditors. They include the Torchlight Fund, one of the parties that lent $100 million to South Canterbury a few months before it collapsed.

The fund focuses on providing cash on favourable terms to troubled firms.

Pyne Gould Corporation, which is managed by a Pyne Gould subsidiary, has a minority stake in the fund.

At midday on Thursday its shares were unchanged at 42 cents.