Pyne Gould Corporation has confirmed that a $100 million loan to South Canterbury Finance ranks ahead of debenture holders and says the funds are not at risk from statutory management of Allan Hubbard.PGC's subsidiary Torchlight Investment Group manages t
Pyne Gould Corporation has confirmed that a $100 million loan to South Canterbury Finance ranks ahead of debenture holders and says the funds are not at risk from statutory management of Allan Hubbard.
PGC’s subsidiary Torchlight Investment Group manages the Torchlight group of funds, which provide loans outside the normal banking environment to distressed companies.
The group recently increased a $75 million credit facility to South Canterbury to $100 million. PGC says it contributed $15 million, with the balance provided by third parties.
In a statement on Friday, PGC said Torchlight considered the funding facility an excellent investment.
“Our facility, being secured ahead of other charges under the Trust Deed, is particularly robust, and our investment is well secured and profitable.”
Torchlight is chaired by PGC cornerstone shareholder and director George Kerr.
