Pyne Gould sues over Perpetual sale
Claim for $22 million.
Pyne Gould Corp [NZX: PGC] is suing Bath Street Capital and Andrew Barnes for at least $22 million that it claims is an unpaid bill from the sale of Perpetual Trust.
Guernsey-based Pyne Gould says it commenced proceedings in the High Court in Auckland yesterday, seeking damages of not less than $22 million, with interest and costs.
Pyne Gould made the demand on Bath Street in May over what it said it's owed from the sale of Perpetual, which "represents unpaid consideration in respect of carrying rights pursuant to the share sale agreement as subsequently varied."
Bath Street rejected the demand, saying at the time the agreement was for Pyne Gould to be paid if the shares of a subsidiary company were listed on the stock market, something that hasn't happened.
Bath Street says it will "robustly defend the matter" and, if it goes to court, will require Pyne Gould principal George Kerr and other associates of the firm to give evidence.
The transaction attracted the attention of the Financial Markets Authority after Pyne Gould recognised the $22 million gain in its 2014 annual earnings, despite the payment not being triggered.
Pyne Gould later said it would reclassify the amount as an "available for sale financial asset" in its first-half accounts, and its 2015 annual statements showed a one-time gain of £11.3 million on the sale of discontinued operations in 2014.
Pyne Gould shares last traded at 24c, and have dropped 43% this year.
(BusinessDesk)
Paul McBeth
Thu, 01 Oct 2015
Thu, 01 Oct 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Pyne Gould sues over Perpetual sale
52043