PGC
22/10/2015 12:42
GENERAL
PRICE SENSITIVE
REL: 1242 HRS Pyne Gould Corporation Limited
GENERAL: PGC: Little material impact expected - Torchlight legal action
22 October 2015
Little material impact on PGC expected from Torchlight Fund No.1 LP legal
action
Pyne Gould Corporation ("PGC") says there is likely to be no or little
material impact on PGC after the High Court ruling in a case involving
Torchlight Fund No.1 LP ("TLF1") concerning a loan from Wilaci, an entity
connected with Australian businessman John Grill.
The amounts reflected in the judgement are not considered likely to have a
material impact on PGC.
As disclosed in the notes to the PGC accounts in 30 June 2014, TLF1 was
placed into receivership and there was a risk that the receivers of TLF1 may
lay claim to some of the assets of Torchlight Fund LP ("TLF"), an associate
of PGC at the time and now a subsidiary.
Due to this risk, TLF had raised a provision in its accounts in respect of
the litigation relating to the Wilaci loan.
The A$5 million fee, referred to in the High Court ruling, has already been
paid and is not outstanding.
The other amounts for interest, fees and costs (c.$4m) reflected in the
judgement are not materially different to what has been provisioned for and
is reflected in the accounts of TLF and, in turn, PGC's carrying value for
its investment in TLF.
The post balance date notes in the PGC accounts will be updated to reflect
the judgement.
For more information, please contact: David Lewis +64 21 976 119
End CA:00272188 For:PGC Type:GENERAL Time:2015-10-22 12:42:49
