Having
lost trust and confidence in George Kerr’s management of Torchlight Fund LP,
investors sued in the Cayman Islands to wind up the Fund.
Mr Kerr is managing
director of listed company Pyne Gould Corporation. Allegations of irregular
related party dealings between Mr Kerr and Torchlight triggered investor concerns,
specifically Torchlight’s purchase of a Wanaka property from companies
associated with Mr Kerr.
To gather evidence for
the Cayman Islands winding up application, Millinium Asset Services Pty Ltd
asked the High Court at Auckland to release documents and the record of
evidence from a 2016 trial between Mr Kerr and former business associate,
merchant banker Michael Carolan. At this
trial Mr Carolan was ordered to repay $1.1 million used to buy a Remuera
home. Confidential and commercially
sensitive documents featured in evidence.
The trial judge supressed publication of some.
Refusing Millinium
access to the 2016 court file, Justice Edwards said the Cayman Islands court
has ordered Torchlight to disclose a wide range of documents as part of the
winding up procedure. Cayman is the
better forum to determine what should be disclosed and how disclosure should be
controlled, she said.
Accident Compensation Corporation
is among investors seeking to wind up Torchlight. Torchlight has counter-sued, alleging
investors are conspiring to quit the partnership by unlawful means.
Carolan
v. NZ Real Estate – High Court (14.02.17)
17.017