Ann: ANNREP: PGC: Audit and Litigation Update

• Release Date: 19/02/16 12:32
• Summary: ANNREP: PGC: Audit and Litigation Update
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					PGC
19/02/2016 12:32
ANNREP
PRICE SENSITIVE
REL: 1232 HRS Pyne Gould Corporation Limited

ANNREP: PGC: Audit and Litigation Update

19 February 2016

Audit Update

Grant Thornton has completed its first audit of Pyne Gould Corporation
("PGC") subsidiary Torchlight Fund LP's ("TLP") financial accounts to 31
March 2015. The audit opinion is unqualified.

PwC was the auditor to 31 March 2013 and 31 March 2014. In each year, PwC
also provided an unqualified audit opinion.

Following the completion of the Torchlight audit, the focus is now on
finalising the impact of consolidation of Torchlight as a subsidiary into PGC
accounts for the 30 June 2015 financial year.

We are working closely with Grant Thornton to achieve this as expediently as
possible.

Litigation Update

As previously advised (23 July 2015 release to NZX- "Torchlight Fund legal
action" ), a Winding Up Petition was filed on 26 June 2015 by certain Limited
Partners with the Grand Court of The Cayman Islands. The hearing date for
this petition is yet to be set.

Subsequent to this, the Petitioners sought an injunction preventing the use
of Local World proceeds. On 22 January 2016 the court declined to grant the
injunction sought.  Instead the Court granted an injunction limited to
preventing payment to persons related to the General Partner without the
consent of the Petitioners or an order by the Court made on application,
supported by evidence, for prospective validation. On 22 January 2016, the
Court dismissed a general application for a validation order without
prejudice to the General Partner's ability to re-apply post release of the
2015 audited accounts.

The General Partner is robustly opposing the Petition as it is not in the
best interest of the Partnership for the underlying assets to be liquidated,
as is being sought by the Petitioners.

The General Partner believes it self-evident that a premature liquidation of
the assets of TLP will result in substantial value loss for all Limited
Partners.

For more information, please contact: David Lewis  +64 21 976 119
End CA:00277969 For:PGC    Type:ANNREP     Time:2016-02-19 12:32:48